Market expert Steph Is Crypto has highlighted a concerning signal in the XRP market that could point towards potential recovery. The short-term holder Net Unrealized Profit and Loss ratio (STH-NUPL) is currently hovering near -0.20, indicating deep losses among short-term investors who are selling their holdings in panic. This drastic drop, one of the lowest recorded in XRP’s history, signals a stage known as capitulation – a time when short-term investors sell their holdings in fear to lock in losses. Historically, this has often marked the exact bottom of market cycles, leading to strong hands quietly accumulating. 2024 and 2025 saw similar patterns emerge where XRP plunged near $0.50 before rallying significantly after a period of panic selling. Steph’s analysis suggests the current level of fear and realized losses among short-term traders is unprecedented, potentially setting the stage for another major reversal if history repeats itself. While this situation reflects extreme pessimism, it could also be a sign of market exhaustion where long-term holders and institutions can take advantage. Steph emphasizes that investors should avoid emotional trading during these periods as they often lead to regret when markets inevitably rebound. Despite short-term volatility, the XRP ecosystem remains robust thanks to Ripple’s global partnerships and liquidity integrations, positioning it for potential growth in the long run.