XRP Supply in Profit Plummets to 58.5% - Market Stress Signals Flash Red

XRP holders face mounting pressure as profitability metrics signal potential trouble ahead.

THE PROFITABILITY PLUNGE

Only 58.5% of XRP supply now sits in profitable territory - a dramatic drop that's got traders watching every tick. When nearly half the market's holdings sink underwater, the psychological impact alone could trigger cascading effects.

MARKET STRESS INDICATORS

This profitability metric serves as the market's collective pulse check. Falling below key thresholds often precedes broader sentiment shifts. Traditional finance types would call this a 'technical correction' while quietly sweating through their custom shirts.

THE DOMINO EFFECT

Watch for leveraged positions getting liquidated first. Then comes the institutional rebalancing. Finally, retail panic completes the cycle - because nothing tests conviction like seeing paper gains evaporate faster than a banker's promise.

BULLISH CASE INTACT?

Seasoned crypto veterans know these shakeouts often create the strongest foundations for next moves. The weak hands get flushed out, leaving diamond-handed believers to accumulate at better prices. Because in crypto, today's stress test becomes tomorrow's breakout story.

TLDR

• Glassnode reports that the share of XRP supply in profit has fallen to 58.5%, the lowest level since November 2024.
• Approximately 41.5% of XRP coins are currently held at a loss, despite the price being four times higher than $0.53.
• The data shows that most XRP investors bought the coin near recent highs, resulting in significant losses.
• Around 26.5 billion XRP are currently underwater, held by investors who bought during a market surge.
• Glassnode warns that the current market setup for XRP is structurally fragile, with many holders potentially poised to sell.

Recent data from Glassnode reveals a sharp decline in the share of XRP supply in profit. The current figure stands at 58.5%, the lowest since November 2024. This indicates that a large number of XRP holders are now facing losses, having purchased the token at higher prices than its current value of $2.15.

XRP Supply Shrinks Amid Rising Losses in Market

The data highlights that 41.5% of XRP coins are currently underwater. Even though the price is four times higher than $0.53, many investors are holding at a loss. Glassnode attributes this to the fact that most XRP holders bought at prices closer to recent highs than at lower valuations.

As a result, approximately 26.5 billion XRP are currently held at a loss by investors. These holders purchased the coin during a market surge and now face losses as the price has retreated. According to Glassnode, this situation suggests that the current XRP market is “structurally fragile,” with many holders potentially poised to sell if prices fall further.

Short-Term Bitcoin Holders Also Underwater

Bitcoin holders who purchased in the last 155 days are facing a similar situation. Data shows that 95% of Bitcoin held by short-term investors is currently underwater. Joe Consorti, an analyst, commented, “The speed and severity of this drawdown are much more intense than previous cycles.”

This rapid decline is the result of two significant drawdowns in the market, each around 30%. Despite these previous dips being significant, the current drop has been much faster and deeper. As a result, a large portion of new investors have lost money at an accelerated pace.

The situation is compounded by the fact that the largest cryptocurrency recently fell below $90,000. This downturn has put immense pressure on both short-term Bitcoin holders and XRP investors, leaving many with significant losses.