KEY INSIGHT
- XRP has dropped sharply, falling about 26% this year and 54% over the past six months, recently trading near $1.34.
- Around 36.8 billion XRP — roughly 60% of circulating supply — is currently held at a loss, representing about $50.8 billion in unrealized losses.
- Large underwater supply creates selling pressure, as investors may sell when prices approach their entry levels, limiting the strength of short-term rallies.
XRP Faces Persistent Selling Pressure as Large Share of Supply Remains in Loss
XRP continues to struggle for momentum as broader market uncertainty and a large pool of underwater investors weigh on price action.
The token has dropped about 26% since the start of the year and roughly 54% over the past six months, recently trading near $1.34 after slipping from around $1.37 to $1.33 during the latest session.
On-chain data from Glassnode shows that roughly 36.8 billion XRP — about 60% of circulating supply — is currently held at a loss, representing around $50.8 billion in unrealized losses at current prices.
The chart highlights a recurring historical pattern. Periods where a large portion of XRP supply sits below cost basis often coincide with prolonged consolidation or resistance during rebounds, as holders attempt to exit positions once prices approach their entry levels.
This “overhang” of supply can make rallies fragile. Instead of new buying alone driving price higher, the market must also absorb selling from investors looking to break even after months of losses.
Macro conditions have added further pressure. Rising oil prices and broader risk-off sentiment across global markets have pushed traders toward defensive positioning, hitting large and liquid cryptocurrencies particularly hard.
For XRP, that macro backdrop has collided with already fragile market structure. Until the share of supply in loss declines or new demand absorbs the overhead supply, short-term recoveries may continue to face resistance despite occasional price rebounds.
