Raducanu, 19, slumped to a 6-3, 6-3 defeat to veteran French player Alize Cornet who is competing in a record 63rd consecutive Grand Slam.
Raducanu has struggled in the spotlight of being a Grand Slam winner, failing to get beyond the second round of any of the previous three majors in 2022.
"In a way, I'm happy because it's a clean slate. The target will be off my back," said the teenager.
The defeat by Cornet was her 16th defeat in 29 matches this season, which is not a bad record for someone of her age and experience, while recent positives were memorable wins over former world number one Serena Williams and Victoria Azarenka in Cincinnati earlier this month.
Dropping down the rankings means she will miss out on seedings at the majors and will get fewer direct entries to bigger WTA tournaments.
"Losing is obviously really disappointing, really sad to leave here. It's probably my favourite tournament," Raducanu said.
"But also I'm in a way happy because it's a clean slate. I'm going to drop down the rankings. Climb my way back up.
"I've been doing some really good work in the last six weeks especially. I am looking forward to kind of putting more of those weeks together consistently, then we'll see what happens."
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