 ▲ XRP (Ripple) © |
A massive volume amounting to 60% of XRP’s total circulating supply has fallen into loss territory, appearing to sink deeper than in previous worst bear markets. At the same time, however, conflicting signals are emerging as exchange reserves rapidly decline and a powerful short squeeze—buying pressure triggered by the liquidation or covering of short positions—appears imminent, marking what could be a once-in-a-lifetime inflection point.
According to cryptocurrency media outlet Bitcoinist on March 11 (local time), XRP’s price remains trapped below $2 amid broad bearish pressure weighing on the market, leading to a sharp increase in the amount of supply sitting at unrealized losses. Dominant selling pressure is causing XRP, one of the leading altcoins, to struggle significantly in finding firm support levels.
Investment analyst Steph is Crypto analyzed data from on-chain analytics platform Glassnode and found that approximately 36.8 billion XRP are currently at a loss. This means about 60% of the total circulating supply is underwater, suggesting that bullish momentum has been severely depleted. Notably, the proportion of loss-making supply is reportedly much higher than during historic market crashes such as the COVID-19 pandemic, China’s comprehensive cryptocurrency ban, and the 2022 FTX bankruptcy.
Despite the unprecedented level of pessimism, actual investor movements on exchanges paint a contrasting picture. Analyst X Finance Bull highlighted that more than 3 billion XRP have recently flowed out of centralized cryptocurrency exchanges, significantly reducing exchange-held reserves. Typically, declining exchange supply signals a reduction in potential selling pressure and is interpreted as a positive sign, as incoming buying pressure could trigger a sharp supply squeeze and price surge.
Currently, XRP stands at a critical crossroads, trapped between massive liquidity clusters on both the upside and downside as it searches for direction. Technical analyst Xaif Crypto noted that after weeks of sideways trading, if the price enters the upper liquidity zone, cascading liquidations could be triggered, resulting in a rapid and explosive short squeeze. As traders attempt to push the market toward specific order book levels, prices are expected to react sensitively to short-term momentum shifts, potentially leading to extreme volatility.
According to CoinMarketCap, XRP is trading at $1.38 at the time of reporting.
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