According to recent data provided by Glassnode, XRP’s supply share of profits has fallen to 58.5%, which is the lowest since November 2024, when the price was $0.53.
Basically, this shows that many people bought XRP at prices above $2.15 and are now making losses.
Although the price of XRP is four times higher than $0.53, 41.5% of XRP coins remain at a loss.
This means that a large portion of investors bought XRP above $2.15.
Most investors bought XRP closer to the recent highs, not during the lowest prices. Therefore, a large part of the market remains at a loss. In fact, approximately 26.5 billion XRP is underwater for these holders.
Since many holders bought near the top, if prices fall further, these investors may panic and sell, increasing downward pressure. Glassnode therefore concludes that the current setup is “structurally fragile.”
Short-term Bitcoin holders are also underwater
Meanwhile, 95% of Bitcoin (BTC) held by short-term holders – those who bought less than 155 days ago – is underwater.
“Even with two 30% reductions this cycle, the speed and severity of the current reduction has made it much more severe,” said analyst Joe Consorti.
The previous drops this BTC cycle were 30% drops, which are significant but manageable.
The current decline is faster and deeper, meaning recent buyers have lost more money faster than in past declines.
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.