The selling pressure surrounding XRP has surged significantly in recent weeks, prompting a warning from blockchain analytics firm Glassnode. In their latest analysis, they describe the situation as a “stop-loss phase” that closely resembles the early stages of the cryptocurrency bear market observed from 2021 to 2022. This downturn has seen XRP“s price dip beneath the average cost basis for all holders, resulting in increased selling activity on global exchanges.
According to Glassnode”s detailed assessment, the current selling pressure is reminiscent of the alarming levels recorded during the early 2022 market downturn. Their data reveals that the seven-day exponential moving average of the Spent Output Profit Ratio (SOPR) has seen a notable decline, dropping from 1.16 last July to a concerning 0.96. This key technical indicator reflects the profitability of coin movements among investors, and the decline below the critical 1.0 threshold indicates that losses are now surpassing profits across the XRP network.
Market analysts interpret this trend as a potential signal of capitulation among retail investors. Institutional traders are also reportedly recalibrating their positions, reflecting broader shifts in market sentiment that began in late 2024. The heightened selling pressure on XRP is further compounded by ongoing regulatory scrutiny and macroeconomic uncertainties as the market approaches 2025.
Comparative Analysis: 2022 Versus 2025
Glassnode”s research highlights striking parallels between the current market dynamics and the bear market that transpired from September 2021 to May 2022. During that period, a similar dip in SOPR below 1.0 preceded a sustained market correction that persisted for roughly eight months. While historical trends can offer essential insights, analysts caution that they do not guarantee identical outcomes in the present.
In examining the metrics, analysts have drawn comparisons between the early 2022 conditions and the current situation in 2025. The key statistics include a 7-day EMA of SOPR at 0.96, a price lower than the average cost basis, and negative market sentiment. Despite these similarities, the current trading volume, which has changed by approximately 38%, remains a vital factor to consider.
Key Factors Influencing Current Market Conditions
Several factors underpin the current selling pressure on XRP. First, macroeconomic conditions have a significant impact on cryptocurrency markets, affecting investor confidence. Second, the lack of regulatory clarity for many digital assets continues to create uncertainty. Additionally, technological advancements within the XRP ecosystem are progressing even amid this volatility.
Financial analysts suggest that stop-loss phases can often present buying opportunities for long-term investors. However, accurately timing market bottoms is notoriously challenging. The ongoing selling pressure reflects both technical indicators and broader market psychology, prompting investors to weigh various data points before making investment decisions.
Understanding Technical Indicators and Market Framework
Beyond SOPR, several technical indicators offer further insights into the current selling pressure on XRP. The Relative Strength Index (RSI) is currently positioned at historically oversold levels, while trading volume data indicates increased activity during price declines. These trends suggest that current market movements involve substantial capital flows rather than mere minor adjustments.
Since 2022, the cryptocurrency market structure has evolved significantly, with the introduction of more sophisticated financial instruments for digital asset trading and increased institutional participation on major exchanges. These changes could influence how the present selling pressure on XRP unfolds compared to prior market cycles.
As market participants navigate these dynamics, it is essential to monitor several key developments in the coming months. Regulatory outcomes from ongoing legal proceedings concerning XRP may provide much-needed clarity. Furthermore, technological upgrades could enhance the functionality of the network, and continued adoption of cryptocurrencies may persist despite current market turmoil.
In conclusion, the intensified selling pressure on XRP mirrors conditions seen in early 2022, according to Glassnode”s thorough analysis. The price of XRP has fallen below the average cost basis for holders, leading to widespread selling across global exchanges. While historical patterns often precede prolonged market corrections, the current environment presents distinct differences that investors should carefully consider before making portfolio decisions.
