XRP's Market Mirrors April 2022 Downturn, Glassnode Warns as Price Nears Critical Level
On-chain analytics firm Glassnode has issued a cautionary signal for XRP investors, noting a striking resemblance between the cryptocurrency's current market structure and that observed in April 2022. With XRP recently dipping below $1.60, the concern centers on its proximity to a key on-chain indicator: the Realized Price.
The Significance of Realized Price
Glassnode highlights that XRP is rapidly approaching its "Realized Price," a metric representing the average acquisition cost of all tokens on the blockchain. Historically, trading above this price indicates that the majority of investors are in profit, while falling below it suggests a prevalent state of unrealized losses. XRP had enjoyed being above this critical threshold since early 2024, signaling widespread unrealized gains. However, a significant drop in profitability occurred during Q1 2025 as tokens were transacted at elevated levels, leading to a rise in the Realized Price. The recent sector-wide market downturn has pushed XRP alarmingly close to its current Realized Price of $1.48.
Historical Precedent and Key Technical Levels
This market dynamic is particularly concerning because Glassnode points out its strong similarity to April 2022. During that period, XRP's price fell below its Realized Price, leading to a failed retest and initiating a steep decline into a prolonged bear market. Currently, XRP trades around $1.60, having shed nearly 15% in the past week. Technical analyst Ali Martinez further supports this cautionary outlook, identifying immediate resistance at $1.86 and crucial support levels at $1.38 and $1.02, following a recent break below a parallel channel pattern. The market now awaits to see if history will repeat itself, potentially leading to further bearish action if the Realized Price is retested and fails to hold.
