Analyst Says 99% of XRP Investors Will Lose Everything. Here’s why

XRP is showing critical changes in on-chain activity that could affect price and investor outcomes. Crypto analyst Steph Is Crypto (@Steph_iscrypto) recently explained these developments in a video.

He emphasized that whale activity has changed since December last year. Large-scale selling dominated the market during that period, contributing to both price corrections and an extended sideways trend.

According to Steph, the size of whale sell-offs has decreased over time. He noted, “These big red areas are getting less significant… the selling pressure from whales is diminishing.” This shift suggests that whales are less willing to offload XRP, which could lead to a significant turnaround in the token’s price.

$XRP: 99% WILL LOSE EVERYTHING!!! (Urgent)

Watch asap! 👇

— STEPH IS CRYPTO (@Steph_iscrypto) February 27, 2026

Retail Capitulation Indicates Opportunity

Steph also pointed to a key metric from Glassnode focused on Bitcoin, which tracks retail investor capitulation. Retail capitulation occurs when a large portion of small investors exit positions, often at a loss. He explained that record-high capitulation has historically been a strong signal for favorable market conditions.

He said, “Typically, turnarounds happen whenever retail capitulates.” He suggests that XRP holders could be entering a period where potential gains are higher, especially for investors who remain in the market.

XRP Holders in Losses and Long-Term Indicators

Another chart Steph analyzed shows XRP’s net unrealized profit and loss ratio. This ratio reflects whether holders are generally in profit or loss. He explained that a drop toward zero or below implies that most holders are at break-even or in loss.

Currently, a significant portion of XRP holders are in losses. Historically, these conditions have also marked strong entry points for investment, suggesting that patient holders may benefit if the market turns upward.

Steph also reviewed XRP’s long-term monthly charts, noting that key support levels dating back to 2017 remain intact. The token continues to trade above its monthly EMA ribbons, reinforcing the overall upward trend. He emphasized that while the timing is uncertain, the long-term trend remains favorable.

Risk and Opportunity

Despite these positive signals, Steph’s analysis highlights the risks for most investors. His suggestion that 99% of investors will lose everything underlines that many retail holders may not weather market volatility. Those who do not understand on-chain signals or sell during short-term fluctuations risk losing significant capital.

Steph’s analysis shows declining whale selling, record retail capitulation, and supportive long-term trends. Most holders face losses, raising liquidation risk. Current conditions offer a high-risk, high-reward window, with XRP’s path depending on whales and retail investor behavior.