On-chain data from Glassnode has revealed the reason why the XRP price has been in a downtrend since 2025. Specifically, the XRP price has dropped from it peaked above $3 last year and has been dwindling ever since. While many in the cryptocurrency space believed that XRP could eventually regain the $3 level, cryptocurrency continues to strugglelosing more profits each month in the face of broader market weakness and changing sentiment.
Why the price of XRP is falling from 2025
Glassnode assigned Prolonged XRP price correction from 2025 to a change in investor behavior caused by weakening profitability in the chain and increasing losses among holders. According to XRP data cut below the holder’s total cost basis, which represents the average price at which current investors acquired their tokens.
When cryptocurrency trading is below this level, a gigantic portion the handles are technically underwaterwhich means they are making a loss. This condition often leads to panic selling as investors try to limit further losses by increasing pressure to sell assets and strengthening the downtrend in prices.
A key indicator supporting this view is Profit Produced Ratio (SOPR)measured using a seven-day exponential moving average (EMA). SOPR tracks whether the movement or sale of coins on the blockchain is at a profit or loss. Glassnode chart can be seen that XRP’s SOPR has dropped from around 1.6 in July 2025 to around 0.96 recently.
It is worth noting that a value above 1 means that coin holders are selling at a profit, while a value below this value signals that the coins are selling at a loss. This sustained move below the neutral level best suggests this selling in XRP currently occurs at a loss rather than in a profit-taking environment.
As a result, on-chain profitability for XRP holders has become negative. Such an environment tends to erode investor confidence in the cryptocurrency and reduce the incentive to hold it, especially among short-term investors. Negative yields can also discourage modern capital inflows as potential buyers see narrow signs of recovery or momentum, further contributing to falling prices or stagnation.
XRP structure reflects 2022 bearish setup
Interestingly, Glassnode noticed this The current structure of the XRP market closely resembles the period from September 2021 to May 2022. During this earlier phase, XRP’s SOPR also dropped below 1 and remained at this level for a long time.
This period was also characterized by prolonged consolidation and low volatility after keen declines before the market eventually stabilized. This comparison suggests that XRP may be in a similar structural phase where trading activity is dominated by losses and recovery is delayed until selling pressure subsides and sentiment returns to positive territory.
As of this writing, the price of XRP has dropped even further and is currently trading below $1.40. CoinMarketCap data shows the cryptocurrency is down over 4.3% in the last 24 hours and well over 46% year-to-date.
Featured image from Freepik, chart from Tradingview.com
