XRP Under Pressure: Investment Losses Rise To Millions Due To Sustained Selling Pressure

XRP is currently experiencing significant pressure, which increasingly resembles a moderate capitulation. For investors who bought the asset for more than $2, losses have now run into the millions. Recent research by Glassnode shows that this group is realizing daily losses that can range from $20 million to $110 million, amid a sharp decline of 55% in value over the past six months to approximately $1,30.

This situation suggests that selling pressure on XRP is being driven by investors reducing risk rather than taking profits. As a result, XRP is suffering from a market full of late bloomers who are now under pressure. Unlike early holders, who still have room to further reduce their positions, this dynamic reinforces the persistent selling.

This has led to the longest losing streak for XRP since 2014, resulting in a top-heavy market structure where price increases struggle to sustain.

What makes this recent price drop more significant than a regular pullback is the origin of the selling pressure. In previous cycles, XRP holders typically sold during upward movements, when prices rose and the gains were hard to ignore. This time, the sell-off is occurring in a weakened market.

Market researchers describe this shift as “distribution in weakness,” a pattern indicating declining confidence in the token’s short-term price direction. This explains why the decline is difficult to halt. New buyers are now incurring losses, while previous holders are still booking profits and can reduce their exposure when the price rises.

In such markets, it is a challenge to see a rebound, because every price increase gives investors the chance to minimize losses or realize profits. The current market is therefore more vulnerable than the main decline figures alone suggest.

Data from Santiment reinforce this picture. Wallets active on the XRP Ledger show an average decrease of 41% in their positions, the weakest performance since the FTX impact in November 2022.

This illustrates how deeply the selling drama has affected recent positions and why the market is struggling to make a sustainable restart.

Additionally, the broader crypto market has offered no relief either. The decline of XRP is taking place during a broader risk-off phase in digital assets, in which Bitcoin is pulling back from over $126.000 to around $66.000. In such an environment, traders are less willing to follow assets without a clear short-term trigger, especially when holder behavior is already deteriorating.

Nevertheless, the XRP market is not uniformly bearish. CryptoQuant data shows that cumulative spot volume on Binance has risen to approximately $520,2 million, indicating increasing buyer demand.

At the same time, the cumulative volume delta for perpetual contracts remains negative at approximately $261 million, meaning that leverage traders have not yet significantly adjusted their positions. This suggests that XRP is still attracting interest from the cash market, but that derivatives markets have not yet confirmed the kind of aggressive repositioning that often accompanies stronger movements.

This translates into a situation where XRP appears to have support but remains weak. Demand from the spot market can dampen the price and reduce the rate of decline, but if futures traders remain defensive, rallies often lack the necessary momentum.

Although the market can stabilize in this state, a new catalyst is often needed to break a decisive trend.

Whale behavior supports this reality. CryptoQuant reports that daily large inflows to Binance have dropped to approximately 12,6 million XRP, while the 30-day cumulative flow has fallen back to approximately 1,44 billion XRP, a decrease from about 2,6 billion XRP in March. Large holders are therefore sending less supply to exchanges, which reduces a source of short-term selling pressure.

Nevertheless, a lower inflow does not automatically guarantee an increase in demand. It simply keeps XRP in a market with less aggressive supply and still insufficient conviction.

This is the reason why XRP appears to be in a kind of suspension as an asset. The pressure from large holders has eased. Genuine buyers remain active in the spot markets. Nevertheless, the token remains trapped by defensive leverage and a broader market that has not yet fully returned to risk appetite.

The market's hesitation stands out against the backdrop of Ripple's recent improvements. The company's multi-year battle under the leadership of Brad Garlinghouse with the U.S. Securities and Exchange Commission (SEC) ended in a settlement following a series of favorable rulings, leading to renewed accumulation and XRP's strongest run in years.

At the same time, Ripple has also pursued numerous acquisitions and licenses to expand its product offering and global presence. Proponents of XRP argue that these developments should eventually carry more weight in price determination.

Asheesh Birla, CEO of XRP treasury firm Evernorth, notes that institutional momentum around XRP is growing at a level not seen 18 months ago. He describes the financial infrastructure surrounding the asset as still under development.

He points to regulatory progress and increasing real-world blockchain activity as evidence that the fundamental context is improving. The market, however, is not yet rewarding XRP as if that revaluation has taken place. Data from SoSoValue shows that exchange-traded funds (ETFs) for XRP recorded their first monthly net outflow of over $31 million in March.

This broke a period of $1,2 billion in inflows, making them one of the strongest early crypto product launches outside of Bitcoin.

That outflow does not disprove Ripple's long-term progress, but it does show that investors remain cautious about assigning a short-term premium to the token.

This leaves XRP caught between two realities. Ripple's legal clarity, capital increases, and institutional pressure offer a more constructive long-term context. In the short term, however, XRP still trades as a former and damaged position, burdened by holders selling on weakness, a large group of investors currently suffering losses, and a derivatives market that has not yet confirmed a trend reversal.

Frequently Asked Questions

What is the main cause of the current selling pressure on XRP?
The selling pressure comes primarily from more recent buyers who are forced to take losses, while earlier holders sell their positions in a weakened market. This creates a dynamic that puts pressure on prices.

Why are traders exercising caution regarding XRP?
Traders are cautious because the broader market is in a risk-off phase, making investors less inclined to take positions in risk assets such as XRP without clear short-term triggers.

How do current market dynamics influence future price movements of XRP?
The current market dynamics reduce the likelihood of strong price increases, as recent buyers are suffering losses and derivative markets remain defensive. This situation requires new catalysts to bring about a significant trend reversal.