A sharp drop in XRP has rattled short-term holders, but some onlookers warn the sell-off may be setting a base for a much larger rebound. Reports say the token slid hard after peaking last year, and a mix of on-chain metrics and chart patterns has traders weighing whether this is panic or opportunity.
Deep Losses And A Familiar Pattern
According to price data, XRP fell from a high near $3.65 to roughly $1.38, a move that wiped out a large chunk of recent gains and produced a 60% pullback from the July peak.
Traders watched as realized losses spiked, with roughly $1.90 billion recorded over one week — a level that matches past capitulation events.
When big losses pile up in a short span, selling pressure can be exhausted and the market is often left with fewer weak hands.
Reports note that the token is approaching a higher-time-frame demand area between $0.85 and $0.65, a zone that acted as resistance before the rally in late 2024.
In prior cycles, that same area turned into a multi-year accumulation range where long-term buyers stepped in.
$XRP Crashed 69% And Everyone Is Panicking: Last Time This Happened It Pumped 835% #XRP Is Trading Around $1.39 After Breaking Down From $2 Support Zone. Currently Retesting The HTF Demand Level Which Previously Acted As Multi-Year Accumulation Zone Upper Boundary.
Already… pic.twitter.com/ZVKY1nwLD4
— Crypto Patel (@CryptoPatel) February 22, 2026
From Panic To Jubilation
Analyst Crypto Patel has highlighted those historical signals on social feeds, arguing the setup looks familiar and may not be permanent panic.
He warned that XRP has dropped 69% and panic is spreading, but the last time it fell this much, it surged 835%.
Bitcoin Moves Provide ContextAcross the broader market, Bitcoin’s swings have been a backdrop to altcoin pain. Recent sessions saw BTC shift from the high $66,000s down toward the mid-$60,000s, and that kind of volatility tends to drag other coins along.
When BTC retreats, altcoins often fall harder, and XRP was no exception. The interplay between Bitcoin’s price action and altcoin flows is a practical reminder that macro moves still matter even when token-specific stories dominate headlines.
Reports have recorded quick selling from short-term holders after price broke below $2, a psychological level many treated as support. That drop accelerated the move to near $1.11 in early February, which represented close to 70% drawdown from the cycle top.
What Traders Are Watching NextA slice of the market exited positions in frustration. Those exits show up cleanly on-chain as realized losses, which can mark the final wave of sellers before stability returns.
From a technical view, staying above the lower bound of the $0.65 to $0.85 band on longer timeframes would be taken as constructive by many.
If that holds, a phased recovery could bring prior resistance levels back into play — around $2, then $3, and beyond.
Featured image from Gemini, chart from TradingView
