XRP Traders Face $50B in Unrealized Losses as Price Falls Below $1.40
The price of XRP has taken a sharp hit in recent weeks.
The token is now down roughly 63% from its multi-year high and recently slipped below the $1.40 level. As a result, a large portion of investors are now holding positions at a loss.
In total, more than $50.8 billion worth of XRP is currently sitting in unrealized losses, meaning many holders bought at prices higher than where the market is trading today.
With XRP now hovering around $1.35, traders are asking a critical question:
Is this deep correction forming a market bottom, or could the decline continue?
The answer may depend on how the price reacts around a few key levels in the coming days.
What the $50B in Unrealized Losses Means for XRP Holders
On-chain data shows just how much pressure the market is currently under.
According to analytics from Glassnode, roughly 36.8 billion XRP tokens are currently being held at a loss. That places the average cost basis for many holders around $1.44, meaning anyone who bought near that level is currently underwater.
This creates an interesting market dynamic.
Investors who are sitting on losses often hesitate to sell unless the price drops significantly and panic sets in. But when the market starts to recover and approaches their entry price, many traders rush to sell just to break even.
That behavior can turn those levels into strong resistance zones.
At the same time, broader market conditions are adding more pressure. XRP investment products have recently experienced steady outflows, including about $16.2 million in redemptions late last week.
With so many holders trapped in losing positions and liquidity starting to thin, a sharp drop below current support levels could trigger another wave of selling.
Key Levels That Could Decide XRP’s Next Move
Right now, the market’s direction largely depends on a few important price levels.
The most critical downside level sits around $1.28, which marked XRP’s monthly low when momentum stalled earlier this year. If the price breaks below that level, the next downside target could appear near $1.11.
On the other hand, buyers have been actively defending the $1.31–$1.34 support zone. This area has absorbed selling pressure multiple times and has helped stabilize the market during recent dips.
For sentiment to improve, XRP would likely need to climb back above $1.48. That level is close to the average cost basis for many holders, meaning a recovery there could relieve some of the selling pressure.
In the short term, traders are watching $1.43 as the first important barrier. A daily close above that level would suggest that the market may finally be starting to regain some momentum.
