XRP Struggles as Most Holders Sit at a Loss and Market Demand Stalls

Key Highlights

• More than 50% of XRP holders are currently underwater, holding at a loss
• Over $50 billion worth of XRP is sitting below purchase price levels
• Weak demand and low trading activity are limiting price recovery
• Large clusters of supply near break-even are creating resistance
• The market faces a balance between potential accumulation and ongoing selling pressure

Majority of XRP Holders Now in the Red

XRP is facing mounting pressure as a significant portion of its investor base remains underwater.

On-chain data shows that more than half of the circulating supply—roughly 36.8 billion tokens—is currently held at a loss, equating to over $50 billion in unrealised losses. 

This means a large share of investors purchased XRP at higher prices and are now waiting for a recovery before exiting or rebalancing positions.

A Market Defined by “Frozen” Supply

With so many holders sitting at a loss, XRP’s supply has effectively become “frozen.”

Rather than actively trading, many investors are holding their positions, reluctant to sell at a loss. This reduces liquidity and limits natural market movement, creating a stagnant trading environment.

At the same time, this frozen supply becomes a potential overhang. If prices begin to rise, many of these holders may look to sell once they reach break-even—adding resistance to any upward move.

Demand Remains Weak

Compounding the issue is a lack of strong demand.

Trading activity has slowed across major exchanges, reflecting reduced participation and weaker speculative interest. Lower volume typically signals hesitation among buyers, making it harder for prices to gain momentum.

This imbalance—high latent supply and low demand—has kept XRP locked in a difficult position.

Persistent Selling Pressure Limits Upside

The current structure creates a feedback loop:

• A large portion of holders are underwater
• Price rallies attract sellers looking to exit at breakeven
• Selling pressure caps upward movement
• Weak demand fails to absorb the excess supply

This dynamic helps explain why XRP has struggled to sustain recoveries, even during broader market rebounds.

Mixed Signals Beneath the Surface

Despite the challenging setup, not all signals are negative.

Some data suggests that large holders—or “whales”—have begun accumulating XRP during this period of weakness, moving tokens off exchanges into long-term storage.

Historically, such behaviour can indicate early positioning ahead of a potential recovery, even as retail sentiment remains cautious.

Outlook

XRP’s current market structure highlights a tension between supply and demand.

On one side, a majority of holders remain underwater, creating persistent selling pressure. On the other, signs of accumulation suggest that some investors see value at current levels.

The next phase for XRP will likely depend on whether demand returns strongly enough to absorb the large overhang of loss-held supply.

Until then, the market remains in a fragile balance—caught between hesitation, hope, and the weight of past buying decisions.