XRP Market Trends Reflect Early 2022 Behavior
The cryptocurrency market is no stranger to intriguing patterns, and XRP’s current market structure is echoing a sentiment last seen in early 2022. In this evolving dynamic, short-term buyers are stepping into the market, purchasing at lower price points, while longer-term holders remain under pressure.
Insights from Glassnode’s Metrics
According to data from Glassnode, XRP’s Realized Price by Age metric reveals a critical trend. Wallets active between one week to one month are now acquiring the digital asset at prices beneath the realized cost basis of six-to-twelve-month holders. This pattern often emerges during periods of “distribution stress.” During these phases, newer participants buy in at lower prices, while previous investors, particularly those who entered at local highs, experience mounting losses. This market configuration can result in prolonged consolidation and increased volatility.
In February 2022, a similar scenario unfolded, leading to a drawn-out consolidation phase, as buyers from past bull runs exited at lower price points. This divergence in realized price levels between short-term and mid-term holders can create persistent selling pressure, further complicating recovery efforts.
Key Metrics Highlight Challenges
One critical indicator, Glassnode’s Total Supply in Loss metric, now shows that approximately 26 billion XRP tokens are held below their acquisition cost. Historically, a rising supply in loss aligns with weaker price movements, reflecting uncertainty and diminishing confidence among investors. Furthermore, the supply in profit has declined to around 40 billion tokens, suggesting shrinking margins for many holders.
The implications are clear: without robust new demand or a significant breakout, XRP is entering a structural consolidation phase instead of a trend reversal. Further downside volatility or extended periods of flat growth could test investor patience.
Price Action and Key Technical Indicators
On the price chart, XRP recently rebounded into the $2.00–$2.10 range after briefly dipping below critical short-term supports. However, indicators such as the Directional Movement Index (DMI) exhibit weakened momentum, with neither buyers nor sellers holding a clear advantage. As a result, the cryptocurrency’s price remains trapped below the highs of late 2024 and mid-2025—heights that continue to pressure longer-term holders.
What Lies Ahead for XRP?
For a sustained recovery, XRP must reduce the proportion of tokens held below cost basis and reclaim prior realized price levels. While short-term accumulation may bolster short-term stability, the current landscape remains reminiscent of early 2022, when slow, uneven recovery characterized market conditions.
How Can Investors Navigate This Landscape?
Crypto investors should consider balancing their portfolios with reliable assets while paying close attention to emerging data on XRP’s market performance. For those seeking a reliable way to gain exposure to cryptocurrencies, top-rated apps like Coinbase or hardware wallets from trusted brands such as Ledger can help secure digital holdings during volatile phases.
