XRP Realized Profit/Loss Ratio Hits 2022 Bear Market Lows: Bottoming Signal?

The 90-day moving average for the XRP Profit/Loss Ratio has dropped to lows the market last saw during the 2022 bear cycle.

This comes as XRP witnesses deeper declines alongside the rest of the crypto market. Specifically, the price collapsed to a new yearly low of $1.0079, dangerously close to losing the $1 psychological mark. Despite recovering to $1.05 at press time, XRP is still down 8% in the past week.

XRP Realized P/L Ratio Hits 2022 Bear Market Lows

According to data provided by market intelligence resource Glassnode, this sustained price decline has now pushed the 90-day moving average (MA) for the XRP Profit/Loss Ratio to 0.33, a low the asset last recorded in August 2022, during one of its most devastating bear markets.

For context, the Realized Profit/Loss Ratio compares the total value of coins sold at a gain with those sold at a loss over a specific period. A reading above 1 shows that profits outweigh losses, while a reading below 1 indicates that losses exceed profits.

The 0.33 reading indicates that, among investors who are actively selling, losses significantly outweigh profits. Specifically, for every $1 in losses that investors realize, only $0.38 in profits is being taken. Notably, this does not refer to total selling volume, but to the balance between profitable and unprofitable transactions.

Each new drop in the ratio shows that more investors are exiting their positions at a loss, and profit-takers no longer generate enough gains to balance out those losses.

Historical Data

Interestingly, despite the ongoing downtrend triggering severe declines as far back as October 2025, the XRP Profit/Loss Ratio did not slip below the 1 baseline until April 2026, as XRP struggled around the $1.3 to $1.4 price level.

By early June, the ratio had collapsed to 0.38, seeing a steep crash after April. XRP has since given up the $1.3 to $1.4 price range, retracing to retest the $1 psychological level. This downward price action pushed the Profit/Loss Ratio to the current reading of 0.33.

During the 2022 bear market, this metric did not slip below 1 until after the Terra ecosystem collapse in May, which led to losses across the crypto market. After reaching 0.33, the metric continued to decline, hitting a low below 0.2, as XRP’s price dropped to $0.31 by June 2022.

While multiple XRP community members believe the recent reading may point to a potential bottom, it is important to note that XRP remained under pressure for months even after the ratio dropped below 1 in 2022. Notably, it wasn’t until September 2022 that the metric recovered above 1, and a full-blown rally only emerged in November 2024.