Recent data reveals that short-term holders of XRP are facing considerable losses, which may signal a pivotal moment in the market. According to the results published in the material, the decline in the short-term holder Net Unrealized Profit and Loss ratio (STHNUPL) suggests a wave of capitulation among investors.
STHNUPL Ratio Indicates Panic Selling
The STHNUPL ratio has fallen to approximately 0.20, indicating that many short-term holders are now selling at a loss. Market analyst Steph is Crypto highlights this trend as a sign of panic selling, which often occurs during turbulent market conditions.
Historical Context and Potential Recovery
Historically, such capitulation phases have been associated with the bottom of market cycles, hinting at a potential recovery on the horizon. As the market reacts to these developments, investors will be closely monitoring XRP's performance for signs of stabilization.
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