XRP has crashed to 2024 November levels and is barely holding above the $1 price level, and many XRP holders are underwater. As the profit-to-loss ratio drops deeper into the negative zone, holders are capitulating to minimize the loss.
XRP slips to November 2024 levels
XRP is ever so slightly holding above the psychological support level of $1 as it dips to November 2024 levels. This price crash is not something that happened recently; it has been crashing since the beginning of the last quarter of 2025.
XRP holders on average are underwater.
From hitting a price above $3.50, the coin continued to slide at times, moving away from the downtrend line. Priced at $1.04, the average XRP holder is now under water. According to Glassnode, a crypto analytical platform, the 90-day simple moving average of the profit/loss ratio has reached 0.33, the lowest reading since August 2022.
When the profit/loss ratio is greater than 1, it means that, on average, the XRP holders are at a profit, but when this value falls below zero, it shows they are at a loss. When this happens, traders exit the market bearing the losses they already have, rather than waiting for the prices to return. And based on the above price chart, this pattern has been a trend that has been lasting for nearly 10 months. As such, now the question is, when will XRP bottom?
XRP won’t bottom until it reaches $0.60 in October
According to some sources, XRP won’t reach the bottom until October, when it reaches a value ranging from $0.60 to $0.80.
However, what’s interesting about XRP is that, although the profit/loss ratio is less than zero, depicting the average holder is underwater, smart money has been buying the coin relentlessly. Market commentator Erin Lane stated and pointed out that SBI Holdings is strategically positioning itself. “The next narrative surrounding $XRP may not be driven by retail investors but by institutions,” Lane said.
Institutions position themselves to welcome CLARITY Act
So why are they positioning themselves, and what do they see coming? The CLARITY Act. But what does the CLARITY Act have to do with XRP?
Once the CLARITY Act is passed, it would permanently codify XRP’s status as a digital commodity under federal law. And commodities fall under the purview of the CFTC, which deals softly with projects that have market integrity and innovation, perfect for XRP. Thirdly, it removes a major barrier for institutional adoption. So, institutions sense these coming and are preparing themselves in advance.
