XRP may be poised for further declines, as current data shows that 41.5% of XRP holders are at a loss at present prices.
According to analysts, recent market movements suggest that if XRP does not recover soon, it could face intensified downward pressure. The analytics firm Glassnode indicated that the supply of XRP in profit has dropped to its lowest since November 2024, when it traded around $0.53.
“At present, despite trading about 4x higher ($2.15), 41.5% of the supply (~26.5 billion XRP) is at a loss — indicating a structurally fragile market dominated by latecomers,” Glassnode remarked.
Translation: Presently, 41.5% of XRP is losing value, indicating a concerning trend for the market.
Tony Sycamore, a market analyst with IG Australia, pointed out that this price drop has taken many investors by surprise, leading to concerns that some might rush to sell to cut their losses if the trend continues.
Sycamore noted that many XRP investors likely purchased when the price was above $3.00 earlier this year, which means their losses are substantially larger at the current price of ~$2.16.
Translation: Many investors may have bought XRP at higher rates expecting continuous growth.
The analyst explained that the 40%+ decline from the $3.66 high in July blindsided many, including long-term holders and newer investors who perceived dips as potential buying opportunities.
Sycamore emphasized that this considerable loss landscape is negatively influencing market sentiment, increasing the likelihood of further declines due to stop-loss sell-offs may exert more pressure on prices.
To change this trajectory, XRP needs to demonstrate a solid recovery above $2.70. Simultaneously, the upcoming releases of several exchange-traded funds (ETFs) could be factors to revive investor interest.
Oops, size from previous sales may restore bullish momentum; notably, the first XRP ETF launched by Canary Capital last Thursday received significant attention, marking a noteworthy debut for US ETFs.
However, despite these developments, XRP’s price remains at $2.14 as of this writing, down significantly from its peak of $3.65 on July 18.
Further context is provided through this ongoing debate on investor interest.
