XRP Waning Price Action Drives Supply Deeper Into The Loss Territory

While the broader cryptocurrency market reeks of heightened volatility, the price of XRP appears to be stuck below the $1.5 mark, which is now considered one of its major resistance levels. With the persistent downside price performance, the percentage of supply in loss has risen sharply, demonstrating the impact of the bearish action on the market.

More XRP Holders Fall Into Loss Territory

After a sharp decline in its price, the market dynamics of XRP are starting to experience a critical change as investors’ pain steadily increases. This trend is being reflected in the amount of XRP at a loss in the market. BankXRP, a researcher and investor, has reported that a growing portion of the leading altcoin is slipping into the loss zone as price momentum continues to fade. This development indicates that many holders are now underwater, which points to mounting pressure across the market.

In the post shared on X, the expert highlighted that over 60% of the entire supply, which represents about 36.8 billion XRP, is now in loss territory. The figure is valued at more than $50 billion in unrealized losses.

When a massive portion of supply is sitting in losses, this shift often suggests that confidence is fading. This is because a persistent period of stagnation or decline reduces profitability for recent buyers. This development is likely to play a key role in shaping the next direction of the price in the short term.

For those who bought the altcoin at a price higher than its current value of $1.35, their breakeven point is positioned at the $1.44 level. Whether the price drops below the current price or pushes beyond the breakeven point is up to this trend. 

Addressing potential future outcomes, the expert stated that selling pressure could emerge close to the $1.44 level as holders exit at the breakeven point in the near term. Meanwhile, for the long term, XRP might clear the bull run, resulting in less resistance and a classic cycle.

A Fading Liquidity On Crypto Exchanges

During the weakening price momentum, XRP liquidity on cryptocurrency exchanges is starting to flip negative, marked by thinning order books. As shared by Arthur, the CIO of Royal Peak Cap, the declining liquidity is particularly evident on Binance, the world’s largest trading platform, which has completely collapsed. 

On the 30-day liquidity index, there has been a drop to historically low levels near zero (0). This positioning is a result of the declining trading volume from over $200 billion in January 2025 to almost nothing today, which can simply amplify uncertainty among traders. 

Such a reading is capable of creating a classic double-edged situation. A bullish view would mean that long-term holders are not selling, and supply on the exchange is extremely thin. Thus, any real buying pressure would probably trigger sharp upward moves. 

A cautious view would be shaped by traders’ fading interest, with the market in a wait-and-see mode. Historically, periods of extremely low liquidity have usually led to major price moves in both directions.