XRP losses are forcing late buyers out, turning every bounce into a new sell zone
XRP's price struggles are driven by recent buyers liquidating losses, creating a market where every rebound faces heavy selling pressure.Summary
XRP is experiencing a significant period of capitulation as investors who purchased the token above $2 are realizing massive daily losses. Unlike previous cycles where selling occurred during price strength, current pressure is characterized by "distribution into weakness," where holders cut risk during market downturns. This has created a top-heavy market structure where price bounces are met with renewed selling from underwater buyers and profit-taking from earlier holders.
Data from Glassnode and Santiment highlight this instability, showing a decline in active wallet positions and substantial realized losses. While spot demand on exchanges like Binance remains present, the derivatives market lacks aggressive bullish repositioning, leaving the price without strong follow-through. Additionally, whale inflows to exchanges have decreased, which reduces immediate supply pressure but does not necessarily generate new demand.
Despite Ripple's improved regulatory standing following its settlement with the SEC and ongoing institutional developments, the market is currently treating XRP as a "stressed asset." Recent outflows from XRP ETFs further reflect investor caution, leaving the token caught between a constructive long-term outlook and a fragile, loss-ridden short-term trading environment.
(Source：CryptoSlate)