On-chain knowledge from Glassnode has unveiled the explanation why the XRP worth has been in a persistent downtrend since 2025. Notably, the XRP worth crashed from its excessive above $3 final yr and has been falling ever since. Whereas many within the crypto house believed XRP might ultimately reclaim the $3 stage, the cryptocurrency has continued to battle, shedding extra beneficial properties every month amid broader market weak point and a shift in sentiment.
Why The XRP Value Has Been Declining Since 2025
Glassnode has attributed XRP’s extended worth correction since 2025 to a shift in investor habits pushed by weakening on-chain profitability and rising losses amongst holders. In response to the information, XRP fell beneath the mixture holder price foundation, which represents the typical worth at which present traders acquired their tokens.
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When a cryptocurrency trades beneath this stage, a big portion of holders are technically underwater, that means they’re holding at a loss. This situation typically results in panic promoting as traders try to restrict additional losses, rising promoting stress on the asset and reinforcing the value downtrend.
A key indicator supporting this view is the Spent Output Revenue Ratio (SOPR), measured utilizing a seven-day Exponential Transferring Common (EMA). The SOPR tracks whether or not cash being moved or bought on the blockchain are being achieved so at a revenue or a loss. Glassnode’s chart reveals that XRP’s SOPR declined from about 1.6 in July 2025 to round 0.96 not too long ago.
Notably, a worth above 1 signifies that holders are promoting at a revenue, whereas a worth beneath that alerts that cash are being bought at a loss. This sustained transfer beneath the impartial stage suggests that the majority promoting exercise in XRP is now occurring at a loss somewhat than in profit-taking circumstances.
Consequently, on-chain profitability for XRP holders has turned adverse. Such an atmosphere often weakens traders’ confidence in a cryptocurrency and reduces the inducement to carry it, particularly amongst short-term merchants. Detrimental profitability may discourage new capital inflows, as potential consumers see restricted indicators of restoration or momentum, additional contributing to cost decline or stagnation.
XRP Construction Mirrors Bearish 2022 Setup
Apparently, Glassnode famous that XRP’s present market construction carefully resembles a interval between September 2021 and Could 2022. Throughout that earlier section, XRP’s SOPR additionally fell beneath 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 section by which losses dominate buying and selling exercise and restoration is delayed till promoting stress eases and sentiment strikes again to optimistic territory.
As of writing, the XRP worth has declined even additional, now buying and selling underneath $1.4. CoinMarketCap knowledge reveals that the cryptocurrency has plummeted by greater than 4.3% over the previous 24 hours and by nicely over 46% yr so far.
Featured Picture from Freepik, chart from Tradingview.com
