The XRP market is currently characterized by a troubling statistic: 41.5% of the total supply remains underwater, even as the token”s price has risen from $0.53 in November 2024. According to data from Glassnode, only 58.5% of XRP holders are in profit, marking the lowest percentage observed in the past year.
Many investors acquired XRP at prices exceeding $2.15, leaving them in losing positions. Currently, approximately 26.5 billion XRP are held at a loss by the most recent investors. This concentration of underwater positions raises concerns that any further decline in price could lead to panic selling, thereby intensifying downward pressure on XRP”s value.
Glassnode has described the current market as “structurally fragile,” attributing this to both the recent purchase prices and the high proportion of affected holders. Analysts have noted that the majority of investors purchased XRP close to its recent peaks rather than at more favorable lower levels, which increases the market”s vulnerability to significant corrections.
Despite the recent rebound in XRP“s price, a substantial portion of the supply continues to be exposed to unrealized losses. This situation could contribute to heightened future volatility and significantly influence the behavior of short-term investors.
As the market evolves, it will be crucial for participants to monitor these underwater positions and their potential impact on market dynamics.
