The crypto market entered a sharp corrective phase this week, with Bitcoin collapsing below $90,000 for the first time since early spring.
Ethereum also slipped under the $3,000 mark, signaling a broad shift toward risk-off sentiment across digital assets.
XRP was among the hardest-hit altcoins. After dropping to roughly $2.10, the asset erased weeks of price accumulation and triggered renewed concern among traders monitoring on-chain behaviour.
Glassnode Data Reveals Majority of Recent Buyers Are Sitting on Losses
Fresh analytics from Glassnode highlight a deeper structural issue beneath XRP’s price performance. According to the firm, only 58.5% of the circulating supply is currently in profit, while 41.5% — equivalent to about 26.5 billion XRP — is now held at a loss.
Although XRP today trades nearly four times higher than it did last November (around $0.53), a large segment of the supply has been accumulated at elevated price levels. Glassnode warns that this distribution reflects a “top-heavy market”, meaning a significant percentage of investors entered during peaks rather than during accumulation phases.
Why This Matters: Panic-Selling Risk Is Rising
The current supply profile suggests that many holders are underwater despite XRP’s major run-up earlier this year. If downside pressure resumes, these late-stage buyers could become a source of accelerated selling, compounding volatility.
Analysts note that markets dominated by high-cost basis investors often demonstrate fragile price floors. When price revisits key support areas, fear-driven liquidations can emerge quickly — especially in macro conditions where capital is already fleeing risk assets.
Technical Outlook: Critical Channel Retest Underway
Chart analysts tracking XRP point out that price action is now hugging the lower boundary of a long-term descending channel. Weekly RSI continues hovering in a neutral-bearish zone and MACD momentum remains weak, illustrating reduced buying conviction.
If the lower trendline fails to hold, traders warn that extended consolidation or deeper correction could follow. A strong rebound from current levels, however, could validate a technical reversal toward the next liquidity pocket between $2.70 and $3.10.
Sentiment Hinges on Broader Market Stability
As Bitcoin’s breakdown ripples across the crypto sector, XRP’s vulnerability is tied not only to its own investor distribution, but also to overall risk appetite in the market. Should BTC remain unstable, analysts caution that altcoins — and especially those with heavy late-buyer concentration — may experience further pressure.
