The price of XRP has taken a brutal hit.
The token is down about 63% from its multi-year high and has fallen below $1.40. This drop left over $50.8 billion in unrealized losses on XRP, with a large portion of holders now underwater.
With the price near $1.35, traders face a big question. Is this deep decline finally forming a bottom in the market, or are more declines still to come?
The answer likely comes down to a few key levels that could decide where XRP goes next.
What the $50 Billion Unrealized Loss Figure Really Means for XRP Holders
On-chain data shows just how strong the pressure has become.
According to Glassnode, approximately 36.8 billion XRP is currently held at a loss. This puts the average holder cost around $1.44, meaning a large portion of investors are underwater as prices trade below this level.
This creates an interesting dynamic. Loss traders generally avoid selling unless support breaks and panic sets in. But as soon as the price rises close to its entry, many rush to exit at breakeven, turning this area into strong resistance.
At the same time, broader market pressure isn’t helping. XRP ETFs have seen consistent outflows, including a $16.2 million buyback late last week.
With so many holders trapped and liquidity dwindling, any sharp drop below current support could trigger a wave of forced selling.
Risk of capitulation: the levels that change everything for the XRP price
Right now, it’s all about a few key levels on the chart.
The biggest danger lies at $1.28. This is the monthly low XRP printed when momentum completely stalled earlier this year. If the price falls below this level, the next downside target will appear near $1.11.
On the other hand, buyers are defending the $1.31 to $1.34 zone. This area has repeatedly absorbed selling pressure and helped stabilize the market during recent declines.
For sentiment to improve, XRP needs to rally above $1.48. This level is roughly the average cost basis for many holders, meaning a rally could remove some of the heavy selling pressure.
In the short term, $1.43 is the first barrier to watch. A daily close above would suggest the market is starting to recover.
The post XRP Traders Face $50 Billion in Unrealized Losses as Price Falls Below $1.40 appeared first on Cryptonews.
