- XRP holders face significant losses as market recovery remains uncertain.
- Ripple Bull Winkle’s bold projection suggests XRP could soar dramatically.
- 41.5% of XRP holders underwater, panic selling could increase pressure.
Recent data from Glassnode reveals a troubling development for XRP holders, as 41.5% of the total supply is now held at a loss. Despite the cryptocurrency’s price standing at $2.15, significantly higher than the $0.53 level seen in November 2024, a substantial portion of the XRP market is struggling. The current situation highlights the reality that many investors bought XRP at much higher prices and are now facing negative returns.
The total amount of XRP held at a loss is estimated at around 26.5 billion coins, a concerning figure for the market’s stability. This suggests that a large number of XRP holders purchased during the peak of the recent bull run, when prices were considerably higher than where they are now. Consequently, these holders are now trapped in underwater positions, with many facing the potential of selling to minimize their losses.
Also Read: Another Big Day Ahead for XRP – Here’s What’s Expected
Is Panic Selling Inevitable for XRP Holders?
The current market setup for XRP is being described as “structurally fragile” by Glassnode, which warns that if prices decline further, panic selling could intensify. The large percentage of holders at a loss significantly increases the likelihood that many will rush to sell their holdings if the price drops further.
This could result in a chain reaction, where downward pressure on XRP’s price increases as more investors attempt to exit their positions.
This scenario brings into question the overall health of the XRP market. Even though the price is higher compared to the lows of 2024, the fact that so many investors bought near the highs of the recent rally means that the market could face significant volatility. If sentiment continues to worsen and more investors decide to cut their losses, XRP may struggle to regain stability in the short term.
XRP’s Potential Surge: Ripple Bull Winkle’s Bold Projection
Crypto researcher Ripple Bull Winkle has shared an analysis suggesting that XRP could experience a dramatic surge in price within the next 12 months. Based on a liquidity model, XRP could rise from $2.45 to over $15,160 as its circulating supply decreases.
The model emphasizes that as scarcity increases, demand will drive the price sharply higher. Ripple Bull Winkle argues this is a mathematical prediction, not hype, suggesting a potential breakthrough for XRP despite the current losses many holders face.
If the model holds true, XRP’s price could surge dramatically in the coming year, countering the current market pressures. The possibility of such a rise adds a layer of optimism to a market that has been largely defined by downward pressure and uncertainty.
Also Read: Egrag Crypto: “People Still Think XRP Will Crash Harder After These ETF Launches,” Reaffirms Stance
