XRP Holders Face Steep Losses Despite Recent Gains as Price Struggles Near $1.35
XRP rose 4% recently but trades below $1.35 despite 11 consecutive days of ETF inflows, held back by profit-taking and weak derivatives demand. Glassnode data shows holders who purchased 6-12 months ago are underwater by roughly 52%, with an average cost basis near $2.22 compared to recent entrants who bought at $1.09-$1.11.
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Conflicting Price Signals
XRP gained 4% in recent trading but remains below $1.35, marking a pullback despite inflows into XRP investment products over the past 11 days. The token reached as high as $1.08 on July 14 according to CryptoSlate data, though some sources cite slightly higher recent levels. Profit-taking and macroeconomic headwinds appear to be capping momentum even as institutional capital flows into the asset class.
Underwater Holders Create Resistance
Glassnode on-chain analysis reveals a cohort of trapped sellers likely to resist further gains. Holders who accumulated XRP between 6 and 12 months ago sit on an average unrealized loss of 52%, with a cost basis near $2.22 versus current prices around $1.08-$1.35. By contrast, recent buyers who entered the market within the past month have a realized price of $1.09-$1.11, placing them near breakeven or in modest profit. This disparity suggests significant sell pressure may emerge if price approaches prior resistance levels.
Derivatives Weakness Signals Caution
XRP perpetual funding rates have compressed to a 2.6-basis-point range, indicating subdued leveraged positioning and weak speculative demand. The tightening of funding rates typically reflects balanced long and short positioning, a signal that traders are hesitant to take aggressive directional bets despite recent ETF inflows. Macro risks and institutional uncertainty continue to weigh on derivatives activity.
Why It Matters
For Traders
Weak funding rates and compressed derivatives positioning suggest limited follow-through momentum; watch $1.35 as key resistance where underwater 6-12 month holders may sell.
For Investors
Large unrealized losses among mid-term holders signal supply pressure that could cap appreciation until macro conditions improve or majority of that cohort sells.
For Builders
Derivative market weakness indicates reduced speculative confidence in XRP's near-term price direction, though ETF inflows suggest institutional interest remains intact.
This article is for information only and is not financial advice. Read the full disclaimer.
