The share of XRP supply currently in profit has fallen to 58.5%, a figure not seen since November 2024, signaling structural weakness and rising concern among investors as nearly half of the tokens remain at a loss.
XRP trades at $2.15, nearly four times its level from a year prior, but 41.5% of the circulating supply—about 26.5 billion tokens—now sits in loss conditions.
This data highlights mounting structural concerns for XRP holders. "Despite prices being much higher than last year, a significant chunk of XRP holders are seeing losses. This is a clear sign that the market is dominated by late buyers," the analysis reports.
Latecomers appear to be driving market fragility, as many acquired XRP at recent cycle peaks.
Top-Heavy Distribution and Investor Anxiety
XRP investors face a precarious situation. The volume of underwater supply suggests top-heavy market positioning, with a notable concentration of tokens purchased at relatively high prices.
According to the report, "Over 41% of XRP's supply is currently underwater, at a loss for their holders."
Such conditions foster anxiety, as swift price drops could trigger rapid liquidations among recent buyers.
Analysts cite these dynamics as a reason to question the sustainability of XRP’s short-term rallies.
Losses remain widespread even with elevated valuation, illustrating a disconnection between recent price gains and genuine investor profitability.
Late Buyers Drive Structural Fragility
XRP’s market structure appears increasingly fragile, with many investors entering during bullish peaks.
The latest figures point to a significant imbalance: "Despite XRP trading around $2.15, the largest share of tokens in loss since November 2024 is now evident," the analysis noted.
This top-heavy environment introduces risks of extended selling pressure should sentiment weaken further.
Nearly half the market, sitting at a loss, faces heightened sensitivity to price fluctuations.
Without a substantial influx of new buyers willing to absorb supply, volatility may increase and liquidity could thin rapidly.