Comprehensive Insights into the Current XRP Market Dynamics
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Current Challenges Facing XRP Investors
XRP investors are navigating a particularly turbulent period as recent on-chain data unveils a significant drop in profitable holdings. Despite the token’s current value being notably higher than the previous year, the market’s fragility is apparent. Recent statistics highlight increasing investor pressure and a deteriorating market structure, contributing to considerable profit losses.
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Unprecedented Profit Decline for XRP Holders
According to new insights from Glassnode, shared on social media platform X, the percentage of XRP supply in profit has plummeted to 58.5%. This is the lowest point since November 2024, when XRP was priced around $0.53. The concerning aspect of this data is the decline in investor profits despite the altcoin trading at over four times its 2024 price.
Currently, XRP trades at $2.15; however, 41.25% of the circulating supply, equivalent to approximately 26.5 billion XRP, remains unprofitable. Glassnode’s findings suggest this decline is due to late-stage buyers acquiring tokens at peak prices, now leading to unrealized losses and an oversaturated market.
The resulting market instability is significant. Many holders are reluctant to sell at a loss, which constrains liquidity and creates a delicate environment. Even moderate selling could escalate downward pressure during market stress. Glassnode’s chart vividly shows the rapid decrease in profitable supply and the shift in investor sentiment once XRP’s momentum weakened.
Intensifying Supply Shock Narrative
In a separate analysis, crypto analyst @RemiReliefX highlights the swift reduction in XRP available on exchanges. Last week, exchange wallets contained around 5 billion XRP, but that number has since dropped to approximately 2.8 billion following the release of a single XRP ETF.
This sharp decline has fueled speculation about potential liquidity shortages, especially if fear of missing out (FOMO) grips institutional and retail investors. The analyst reiterated warnings of a supply shock, referencing Ripple CEO Brad Garlinghouse’s comments on how limited supply could drive up prices.
@RemiReliefX has made a daring prediction that XRP could soar to $1,000 by year-end, a staggering 46,600% increase from its current valuation of $2.15. Furthermore, he speculates that during this bull cycle, the altcoin might surge to $1,700.
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