On-chain knowledge from Glassnode has unveiled the rationale why the XRP worth has been in a persistent downtrend since 2025. Notably, the XRP worth crashed from its high above $3 last year and has been falling ever since. Whereas many within the crypto house believed XRP might finally reclaim the $Three stage, the cryptocurrency has continued to struggle, shedding extra positive factors every month amid broader market weak spot and a shift in sentiment.
Why The XRP Value Has Been Declining Since 2025
Glassnode has attributed XRP’s prolonged price correction since 2025 to a shift in investor conduct pushed by weakening on-chain profitability and rising losses amongst holders. In keeping with the info, XRP fell beneath the mixture holder price foundation, which represents the common worth at which present buyers acquired their tokens.
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When a cryptocurrency trades beneath this stage, a big portion of holders are technically underwater, that means they’re holding at a loss. This situation usually results in panic selling as buyers try to restrict additional losses, rising promoting strain on the asset and reinforcing the value downtrend.
A key indicator supporting this view is the Spent Output Profit Ratio (SOPR), measured utilizing a seven-day Exponential Transferring Common (EMA). The SOPR tracks whether or not cash being moved or offered on the blockchain are being carried out so at a revenue or a loss. Glassnode’s chart shows that XRP’s SOPR declined from about 1.6 in July 2025 to round 0.96 just lately.
Notably, a worth above 1 signifies that holders are promoting at a revenue, whereas a worth beneath that alerts that cash are being offered at a loss. This sustained transfer beneath the impartial stage suggests that the majority selling activity in XRP is now occurring at a loss quite than in profit-taking situations.
Because of this, on-chain profitability for XRP holders has turned detrimental. Such an atmosphere normally weakens buyers’ confidence in a cryptocurrency and reduces the inducement to carry it, particularly amongst short-term merchants. Unfavourable profitability may discourage new capital inflows, as potential consumers see restricted indicators of restoration or momentum, additional contributing to cost decline or stagnation.
XRP Construction Mirrors Bearish 2022 Setup
Apparently, Glassnode famous that XRP’s current market structure intently resembles a interval between September 2021 and Might 2022. Throughout that earlier section, XRP’s SOPR additionally fell beneath 1 and remained there for a very long time.
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The interval was additionally marked by extended consolidation and low volatility following sharp declines, earlier than the market finally stabilized. This comparability means that XRP could also be experiencing an identical structural section during which losses dominate buying and selling exercise and restoration is delayed till promoting strain eases and sentiment moves back to positive territory.
As of writing, the XRP worth has declined even additional, now buying and selling underneath $1.4. CoinMarketCap knowledge reveals that the cryptocurrency has plummeted by greater than 4.3% over the previous 24 hours and by properly over 46% 12 months thus far.
Featured Picture from Freepik, chart from Tradingview.com
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