XRP Supply In Profit Falls to 58.5% – Lowest Since 2024 Despite Higher Price
Overview
XRP is currently experiencing significant challenges as it faces increased selling pressure amidst a broader risk-off sentiment in the cryptocurrency market. The recent decline in Bitcoin has adversely affected altcoins, including XRP, leading to a concerning market environment characterized by tightening liquidity and diminished investor interest in risk assets.
Current Market Conditions
XRP’s situation has become precarious as many holders are now sitting on unrealized losses. On-chain data indicates that a substantial number of buyers, particularly those who entered the market following an ETF announcement and during the previous rally, are facing losses as the price continues to decline. This top-heavy market structure is exerting pressure on holders, contributing to heightened selling momentum driven by fear.
The macroeconomic backdrop is exacerbating these challenges. Global markets are grappling with rate volatility, geopolitical tensions, and tightening dollar liquidity, which are causing capital to flow away from speculative assets. As a result, XRP’s price is at a critical juncture, where it must either stabilize at key support levels or risk a deeper correction.
XRP Supply in Profit
Recent data from Glassnode highlights a significant weakening in XRP’s market structure due to the latest sell-off. The proportion of XRP supply currently in profit has dropped to 58.5%, marking its lowest level since November 2024. Despite the price being substantially higher than it was last year, a notable 41.5% of the circulating supply—approximately 26.5 billion XRP—is currently at a loss. This situation underscores a critical issue: the market is heavily skewed towards late investors who purchased at elevated price levels and are now feeling the strain as prices retreat.
The large amount of XRP supply in the red, even at current elevated prices, suggests that the previous price surge was driven more by speculative interest than by long-term investment conviction. As these late buyers confront losses, the potential for increased sell pressure rises, potentially leading to a cycle of liquidation.
XRP Price Analysis
XRP is currently struggling under intensifying selling pressure, with a clear downtrend visible in its price movement since early October. The price is hovering around a key horizontal support level that has been tested multiple times throughout the year. The repeated weakness in bounces from this support zone indicates a decline in buyer strength and an increased risk of a deeper breakdown.
Moreover, XRP is trading below its 50-day, 100-day, and 200-day moving averages, all of which are showing a downward trend—a classic indicator of deteriorating market conditions. The failure to reclaim the 50-day moving average in early November signified a shift in control back to sellers, who have pushed the price lower. Additionally, the formation of lower highs since the September peak suggests that bullish momentum is waning, with each rally attempt being met with quicker sell-offs.
Impact on the crypto market
- The decline in XRP’s supply in profit signals potential instability within the market, which could lead to increased volatility.
- The top-heavy market structure may result in panic selling, as late buyers facing losses may hasten their exit.
- A shift towards risk aversion in the broader market could hinder recovery efforts for XRP and other altcoins.
- Continued selling pressure could exacerbate a bearish trend, impacting overall market sentiment.
- The struggle to maintain key support levels for XRP may have broader implications for investor confidence in the cryptocurrency space.
Updated: 11/18/2025, 10:26:08 PM
