According to recent data provided by Glassnode, the share of XRP supply in profit has fallen to 58.5%, which is the lowest since Nov 2024, when the price was $0.53.
This essentially shows that a lot of people bought XRP at higher prices than $2.15 and are now holding at a loss.
Even though the XRP price is four times higher than $0.53, 41.5% of XRP coins are held at a loss.
This means a large portion of investors bought XRP somewhere above $2.15.
Most investors bought XRP closer to the recent highs, not during the lower prices. So a large portion of the market is holding at a loss. In fact, roughly 26.5 billion XRP are underwater for these holders.
Since many holders bought near the top, if prices drop further, these investors may panic sell, increasing downward pressure. Hence, Glassnode concludes that the current setup is "structurally fragile."
Short-term Bitcoin holders are also underwater
In the meantime, 95% of Bitcoin (BTC) held by short-term holders, those who bought less than 155 days ago, are underwater.
"Even with two 30% drawdowns this cycle, the speed and severity of the current drawdown have made it much more severe," analyst Joe Consorti has noted.
Previous drawdowns this BTC cycle were 30% dips, which are significant but manageable.
The current drop is faster and hit deeper, meaning recent buyers have lost more money more quickly than in past dips.
Historically, BTC may have seen big drops, but never has such a high percentage of new investors been underwater simultaneously.
Earlier today, the largest cryptocurrency collapsed below the $90,000 level.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team