The latest on-chain data shows that XRP holders face challenging conditions. The network now has most of its users in a state of loss following the token’s severe decline from its peak value in 2025.
Glassnode, a blockchain analytics firm, reports that approximately 36.8 billion tokens are currently held at a loss. The ecosystem shows total unrealized losses of $50.8 billion, which represent the difference between investor acquisition costs and current market prices. The losses show how much more investors spent to buy their tokens than what they can currently sell them for.
An unrealized loss does not mean investors have sold. The asset has lost value because its current market worth is less than what investors paid for it. The market psychology experiences rapid changes when investors experience substantial financial losses.
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XRP’s explosive rally and reversal
XRP experienced a dramatic run throughout 2025. The token surged in a powerful rally that captured global attention. The first breakout above the $1 mark led to a subsequent rise that exceeded $2 and reached a new all-time high above $3.
The peak of the rally showed that nearly all existing tokens were generating profits. The on-chain charts displayed that the supply held at a loss had decreased to almost complete extinction. The network investors were enjoying profitable returns. But the surge did not last.
Ripple started its decline following the peak. The price experienced a sudden decline, which resulted in a decrease to the $1–$2 price range. The market slowdown caused an increase in XRP holdings, which were being held at a loss.
The “supply in loss” metric currently measures 36.8 billion tokens, which indicates that most investors are experiencing financial distress.
XRP faces growing market pressure
Traders have access to market data up to October 2023. The current increase in available underwater supplies has reached levels typical of earlier bear market periods. Australian analysts use the term “max pain” to describe market conditions that create the most intense pressure on investors.
The outcome of these situations will result in two distinct results.
Some holders may choose to wait for a broader market recovery, hoping XRP will reclaim higher price levels. Long-term believers often view deep drawdowns as temporary phases.
Others may decide to exit their positions. The process of capitulation selling occurs when traders experience major losses.
The cryptocurrency XRP has demonstrated weakness through its current performance. The market experienced heavy selling activities after a short period of price recovery during January. The price movement shattered multiple important psychological support levels, which held no defending strength.
XRP has been unable to develop positive momentum since its February collapse. The token is currently trading at approximately $1.34, which positions it near the lower boundary of its consolidation area.
The market currently experiences a temporary pause. The upcoming market movement will determine whether XRP holders choose to stay patient or if the selling pressure results in a significant market downturn.
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