On-chain information from Glassnode has unveiled the explanation why the XRP value has been in a persistent downtrend since 2025. Notably, the XRP value crashed from its high above $3 last year and has been falling ever since. While many within the crypto area believed XRP might ultimately reclaim the $3 degree, the cryptocurrency has continued to struggle, shedding extra positive aspects every month amid broader market weak point and a shift in sentiment.
Why The XRP Price Has Been Declining Since 2025
Glassnode has attributed XRP’s prolonged price correction since 2025 to a shift in investor habits pushed by weakening on-chain profitability and rising losses amongst holders. According to the information, XRP fell under the mixture holder price foundation, which represents the typical value at which present buyers acquired their tokens.
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When a cryptocurrency trades under this degree, a big portion of holders are technically underwater, which means they’re holding at a loss. This situation usually results in panic selling as buyers try and restrict additional losses, growing promoting strain on the asset and reinforcing the worth downtrend.
A key indicator supporting this view is the Spent Output Profit Ratio (SOPR), measured utilizing a seven-day Exponential Moving Average (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 price above 1 signifies that holders are promoting at a revenue, whereas a price under that indicators that cash are being offered at a loss. This sustained transfer under the impartial degree suggests that the majority selling activity in XRP is now occurring at a loss reasonably than in profit-taking situations.
As a consequence, on-chain profitability for XRP holders has turned adverse. Such an setting normally weakens buyers’ confidence in a cryptocurrency and reduces the inducement to carry it, particularly amongst short-term merchants. Negative profitability may also discourage new capital inflows, as potential consumers see restricted indicators of restoration or momentum, additional contributing to cost decline or stagnation.
XRP Structure Mirrors Bearish 2022 Setup
Interestingly, Glassnode famous that XRP’s current market structure carefully resembles a interval between September 2021 and May 2022. During that earlier part, XRP’s SOPR additionally fell under 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 ultimately stabilized. This comparability means that XRP could also be experiencing an analogous structural part through 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 value has declined even additional, now buying and selling underneath $1.4. CoinMarketCap information reveals that the cryptocurrency has plummeted by greater than 4.3% over the previous 24 hours and by effectively over 46% 12 months up to now.
Featured Image from Freepik, chart from Tradingview.com
