XRP continues to face significant pressure, with recent oil shocks and market unease prompting investors to adopt a more defensive approach. The digital asset, linked to Ripple, has experienced a 26% decline this year to around $1.34 and a 54% drop over the past six months, according to data from CryptoSlate. In the latest 24-hour session, XRP slid from about $1.37 to as low as $1.33 before rebounding to nearly $1.35.
Despite the modest movement in the crypto world, on-chain and exchange data indicate a market grappling with a large number of holders incurring losses and a trading environment that has lost some depth. Glassnode data reveals that approximately 36.8 billion XRP tokens are held at a loss at current prices, totaling about $50.8 billion in unrealized losses, or roughly 60% of the circulating supply.
This situation leaves a substantial group of investors still underwater, likely prompting them to reduce exposure as the price nears their entry levels. This explains why XRP has struggled to convert brief recoveries into sustained advances.
The macro backdrop, including rising oil prices and the broader repricing of risk assets, has led traders to reassess their exposure to digital tokens. XRP has been caught in this adjustment, exacerbated by its internal positioning indicating vulnerability to renewed selling.
The realized price of XRP stands around $1.44, below which the average holder is in a loss position. This dynamic influences the behavior of rallies, turning them into opportunities for holders to improve their balance sheets. Other on-chain indicators, such as Glassnode’s Spent Output Profit Ratio and Net Unrealized Profit and Loss, further support the notion of a market struggling to move out of its loss regime.
Sell-side aggression is evident in order flow and derivatives markets, with institutional data signaling a less supportive environment for an XRP uptrend. Exchange-traded fund products have experienced outflows, hinting at a shift in sentiment among allocators. Additionally, XRP-focused investment products have seen significant outflows this month.
The derivatives market also reflects reduced participation, with open interest falling to its lowest level since January 2025. This decline suggests traders are closing positions rather than adding leverage, contributing to a market dominated by aggressive sell orders. The market’s sensitivity is heightened by thin exchange activity, with lower trading volumes and decreased wallet interactions making price movements more reactive.
Overall, XRP faces challenges in attracting strong demand and building upward momentum, with a fragile market structure underneath seemingly stable price charts. This highlights the importance of monitoring key levels, such as the realized price band, for potential shifts in the XRP market.
