As Ripple (XRP) has declined to the low $1 range, an increasing number of investors are stepping up to sell at a loss. The selling pressure has been expanding to its highest level in recent years.

According to on-chain data analytics firm Glassnode, as XRP's price was pushed down to $1.04, the profit-loss ratio based on the 90-day moving average dropped to 0.33. This is the lowest level since August 2022, indicating that the phenomenon of "capitulation"—where investors lock in losses and exit the market fearing further declines—is intensifying.

Capitulation is a phenomenon in which investors resort to selling to avoid larger losses when price declines persist over a long period. In this phase, it is common to see a simultaneous increase in trading volume and a contraction in investor sentiment.

Underlying this trend are concerns about macroeconomic indicators. The market analysis suggests that recent U.S. inflation data releases and weakening investor sentiment toward global risk assets are putting pressure on the prices of major cryptocurrencies, including XRP.

On June 25, Korea time, the U.S. Bureau of Economic Analysis (BEA) under the Department of Commerce reported that the May Personal Consumption Expenditures (PCE) price index rose 4.1% year-over-year. The core PCE, excluding energy and food, also increased by 3.4%, confirming that inflationary pressures persist. The PCE is one of the key inflation indicators that the U.S. Federal Reserve refers to when determining monetary policy. Accordingly, the market is focusing on the possibility that forecasts regarding the timing and magnitude of future interest rate cuts may be readjusted.

However, some investors are also anticipating a potential rebound, noting that large-scale stop-loss selling could eventually alleviate selling pressure in the long run.

[This article was written with the assistance of AI. This article does not constitute investment advice, and any losses arising from cryptocurrency investments may be borne by the investor.]