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?
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.
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.
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“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.
Sycamore said this widespread unrealized loss is now weighing on sentiment and raises the risk of further downside, as stop-losses and forced sales could increase selling pressure.
“Recovery will require a decisive rebound back above $2.70,” he said.
However, one factor that holders are hoping will help return bullish momentum to XRP is the wave of exchange-traded funds (ETFs) that are expected to hit the market this week.
Following the launch of the first spot-XRP ETF by Canary Capital on Thursday, which marked the most successful first-day performance for US ETFs in 2025, there are four more ETFs from Franklin Templeton, Bitwise, 21Shares and CoinShares just days away from launch.
However, the price has yet to show a resurgence. XRP is currently $2.14 at the time of writing, down over 40% since reaching its all-time high of $3.65 on July 18.
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