XRP Sheds 16% from Recent Highs as Holder Profitability Drops Sharply
XRP has seen a significant pullback, retreating roughly 16% from its recent high of $2.60 to the current level of around $2.15. This correction has coincided with a notable shift in investor sentiment, as approximately 35% of the total XRP supply is now held at a loss — the lowest profitability level observed in several months.
Despite the market optimism surrounding the recent launch of a spot XRP exchange-traded fund (ETF) on November 14, the cryptocurrency has failed to maintain upward momentum. After briefly rallying in anticipation of the ETF, XRP reversed course, giving up recent gains and falling back toward a key support range between $2.10 and $2.15.
According to on-chain data from Glassnode, XRP’s profitability has deteriorated rapidly over the last month. In October, approximately 85% to 90% of XRP holders were in profit. That figure has now dropped to a range between 65% and 70%, meaning that nearly one out of every three XRP holders is experiencing unrealized losses.
This marks the lowest profitability since early 2024, a stark contrast to January, July, and August when XRP’s price surged to highs of $3.50 to $4.00, and nearly 100% of wallets were in the green. The current landscape reflects growing pressure among holders, with an increasing number of wallets falling underwater. This raises the risk of capitulation — a scenario where investors sell off at a loss, which could trigger a deeper price correction.
Technical indicators also paint a concerning picture. XRP’s Relative Strength Index (RSI) is currently at 37.81, signaling that the asset is nearing oversold conditions but hasn’t reached a reversal threshold yet. Historically, RSI levels below 30 have marked local bottoms, but current momentum suggests further downside is still possible before a technical recovery begins.
Price action confirms this bearish outlook. Attempts to sustain rallies above the $2.60 mark have consistently failed, with sellers stepping in aggressively. This has pushed XRP back toward its current support levels. Should XRP break below the $2.10-$2.15 zone, there’s a risk of further decline toward the psychologically important $2.00 level.
The recent downturn is particularly notable given the broader context. The launch of the XRP ETF — the first U.S.-listed fund offering direct exposure to XRP — was expected to generate institutional interest and stabilize the asset’s price. However, the anticipated influx of capital has not materialized to a meaningful degree, and the market reaction has been muted.
Adding to the pressure is weakness across the broader cryptocurrency market. Bitcoin recently tested support at $92,000, while Ethereum briefly dipped below $3,000. The overall bearish sentiment has spilled over into altcoins, exacerbating XRP’s losses despite its own fundamental developments.
XRP’s struggle to hold gains following positive news highlights a growing disconnect between fundamental catalysts and market performance — a dynamic that often occurs during late-stage bull cycles or early bear market phases. Investor psychology plays a crucial role here; when sentiment turns risk-averse, even favorable developments may fail to generate meaningful price action.
Looking ahead, traders and investors will be closely monitoring key support levels. A breakdown below $2.00 could open the door for a retest of lower zones around $1.90 or even $1.80, especially if broader market conditions remain weak. Conversely, a bounce from the current range and a successful push back above $2.30 could help stabilize sentiment and establish a new base for recovery.
One factor that could influence XRP’s trajectory is the continued behavior of long-term holders. If wallets that have held XRP for more than a year continue to remain inactive — not selling despite being in loss — this could indicate a strong conviction and reduce near-term selling pressure. However, renewed volatility in the crypto market might test that patience.
Another element to consider is the volume and inflows into the newly launched XRP ETFs. While the initial reaction has been underwhelming, sustained institutional interest in the coming weeks could help shore up demand. Analysts will be watching fund inflows and changes in trading volume closely to assess whether institutional adoption is gaining traction.
Furthermore, macroeconomic conditions and regulatory developments in the cryptocurrency space continue to play a significant role in market sentiment. Any new guidance from regulators or shifts in interest rate expectations could impact risk appetite across financial markets, including digital assets like XRP.
In the short term, XRP remains vulnerable to further losses if key support levels do not hold. However, oversold technical conditions and high levels of unrealized loss could eventually trigger a relief rally, especially if sentiment improves or the broader crypto market finds its footing.
For now, XRP investors face a challenging environment, where even bullish news is being overshadowed by broader market corrections and weakening momentum. The coming weeks will be critical in determining whether XRP can stabilize and regain upward traction — or whether the current downtrend deepens further.