XRP pressures new buyers, as 42% of the supply is in the red

Ripple’s XRP is in a precarious zone, after a year of supply turnover. After the latest market downturn, 42% of the XRP supply is in the red. 

XRP holders, especially short-term buyers, are challenged to hold through a precarious period. As of November 19, only 58% of holders have unrealized gains, with 42% of the supply underwater. 

The metric suffered a rapid shift, as XRP holders were quite confident in October. At that time, over 90% of the XRP supply was in the green, suggesting a potential rally to a higher range. 

XRP fell to $2.19, after weeks of trading sideways. Currently, XRP sentiment remains low for retail traders. 

One of the major sources of pressure for XRP was the ongoing whale selling. While holders were confident about XRP, older whales and traders shed a significant part of their holdings, especially during periods of bullish sentiment. This allowed whales to cash out during the stronger market times, leaving other holders with losses. 

XRP saw holder turnover in the past year

For XRP, the percentage of supply in profit returned to levels not seen since November 2024. At that time, XRP made its first hike from $0.50 to over $1, before an even stronger year-end rally. 

XRP peaked above $3 in 2025, but has not fulfilled expectations of a higher price range. In the past year, the available supply saw a turnover from whales to new holders, which acquired the asset at a much higher range. 

The main expectation for XRP was a climb to $10 during a more significant bull market. With the current correction, XRP is becoming riskier to hold, recalling previous waiting periods of years in a bear market. The current wave of holders continued to support XRP with expectations of a hike to over $6, fueling the buying during the year’s peak valuations.

XRP open interest also remains relatively high, with more traders attempting to go long. However, XRP remains risky, with $3.9M in long liquidations for the past day. 

David Portnoy buys the dip on XRP 

Amid the recent price drop for XRP, an unexpected whale moved in. David Portnoy, known for his forays into meme tokens, announced an XRP purchase as part of pouring $2M into several crypto assets. 

Portnoy announced he bought $500K worth of XRP, among other assets, including ETH. 

The purchase was too small to boost XRP, and was not a sufficient driver for social media hype, due to generally low sentiment. 

XRP retains relatively high mindshare, due to its legacy status and the ‘Ripple army’ of posters, influencers, and early holders. 

Based on Messari data, mindshare expanded by 12% to a total of 1.2%, surpassing even more active assets. For now, XRP is seen as risky, potentially sinking into another years-long bear market, as mass adoption of the XRPL is still slow, with the protocol only carrying $73M in value locked.

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