Special Content
Home Altcoins XRP ‘structurally fragile’ as 41.5% of supply at a loss

XRP ‘structurally fragile’ as 41.5% of supply at a loss

63 Views
XRP ‘structurally fragile’ as 41.5% of supply at a loss

XRP supply in profit is at its lowest levels in 12 months, and one analyst has warned of further downside if investors decide to cut their losses. Could XRP ETFs bring the bulls back?

COINTELEGRAPH IN YOUR SOCIAL FEED

XRP could be headed for further downside if it fails to secure a meaningful recovery soon, with 41.5% of XRP holders underwater at current prices, according to analysts. 

In an X post on Monday, crypto analytics firm Glassnode stated that the “XRP supply in profit” has reached its lowest levels since November 2024, when the price was approximately $0.53. 

“Today, despite trading ~4× higher ($2.15), 41.5% of supply (~26.5B XRP) sits in loss — a clear sign of a top-heavy and structurally fragile market dominated by late buyers,” said Glassnode. 

Source: Glassnode

IG Australia market analyst Tony Sycamore told Cointelegraph the recent price drop has likely come as a surprise to many XRP investors, and the top-heavy structure means some may be looking to cut their losses if the downward trend continues.

Related: ‘Very wide gap’ between XRP and Solana investor interest: Exec

“The date suggests that many XRP holders likely bought when XRP was above $3.00 ( Jan, July, August, September, and early October), leaving their entry point well above the current ~$2.16 level,” Sycamore said.

“The 40%+ sell-off from July $3.66 high has blindsided both long-term hodlers expecting perpetual upside and newer entrants who bought near the highs due to FOMO and viewed dips as a buying opportunity,” he said.