XRP holders face $50B in unrealized losses as it trades below $1.40

💡 DMK Insight

With XRP trading at $1.36, the fact that 60% of its circulating supply is underwater at $1.35 is a major red flag for bulls. This situation indicates a significant resistance level right at the $1.35 mark, where many holders are likely feeling the pressure to sell, which could lead to increased volatility. The ongoing spot ETF outflows are compounding the issue, as they reflect a broader market sentiment that’s currently bearish. Traders should keep an eye on the sentiment indicators and volume trends, as a sustained break below $1.35 could trigger further selling, while a bounce could offer a short-term buying opportunity. On the flip side, if XRP manages to reclaim and hold above $1.40, it could signal a shift in momentum. Watch for any news or developments around ETF approvals or regulatory clarity that could impact sentiment positively. The next few days will be crucial, especially with the current bearish sentiment weighing heavily on the market.