XRP, the digital asset linked to Ripple, has recently experienced a notable downturn, perplexing investors who anticipated a boost from the historic launch of spot XRP Exchange-Traded Funds (ETFs). Despite these significant institutional developments, the cryptocurrency has failed to find upward momentum, leading to a substantial decline in both its price and the profitability of its holders.
XRP's Sharp Retreat and Collapsing Profitability
The cryptocurrency has seen a significant 16.17% drop from its recent peak of $2.60, now trading around $2.1551. This decline has had a profound impact on its investor base, with Glassnode data revealing a dramatic deterioration in holder profitability. In October, an estimated 85-90% of XRP supply was held in profit; however, this figure has plummeted to 65-70% in November, meaning roughly one-third of all XRP holders are now sitting on unrealized losses. This represents the lowest profitability level for XRP investors since November 2024, a stark contrast to earlier periods this year when nearly all holders enjoyed gains.
ETFs Fail to Counter Downward Momentum
Ironically, XRP's decline comes on the heels of the highly anticipated launch of spot XRP ETFs on November 14, following earlier regulatory clarity in September. These regulated investment products were widely expected to drive institutional demand and bolster the token's value. However, the market has defied these expectations, with XRP unable to sustain rallies above the $2.60 mark and repeatedly encountering selling pressure. Technical indicators also signal ongoing weakness; the Relative Strength Index (RSI) at 37.81 suggests that while oversold conditions are approaching, further downside remains possible before a technical rebound might materialize. A breakdown below the critical $2.10-$2.15 support zone could even accelerate losses towards the psychological $2.00 barrier.
Broader Market Headwinds
XRP's struggles are not entirely isolated, as the broader cryptocurrency market has also faced significant selling pressure. Both Bitcoin and Ethereum, the two largest cryptocurrencies, have experienced corrections, with Bitcoin testing $92,000 support and Ethereum briefly dipping below $3,000. This sector-wide weakness has exerted additional downward pressure on altcoins like XRP, overshadowing individual fundamental developments and contributing to its inability to maintain momentum despite what should have been a bullish catalyst.
