The XRP price is once again under pressure. According to market data, more than 41.5% of the total supply is currently at a loss, indicating a fragile market structure. Investor sentiment remains cautious, especially after the sharp correction over the past few months.

Large number of investors underwater

Despite XRP trading significantly higher today than a year ago, a substantial portion of tokens is still at a loss. Analysts note that many investors opened their positions at much higher levels, when XRP traded above three dollars. The recent drop of more than 40% from the July peak has surprised both long-term holders and new entrants.

When such a large part of the market is in the red, the likelihood increases that investors may try to limit their losses. This can add to selling pressure and push the price further down. According to analysts, a convincing recovery above key resistance levels is needed to restore confidence.

Price searching for direction after steep correction

At the time of writing, the XRP price is hovering around $2.14, more than 40% below the all-time high of $3.65 reached on 18 July. The market has clearly entered a phase of consolidation and uncertainty. For sentiment to improve structurally, a clear move back above previous resistance levels is required.

Hopes for renewed demand from upcoming XRP ETFs

There is, however, some optimism. Several new XRP ETFs are launching this week, which analysts believe could drive additional demand from institutional investors. The first spot-XRP ETF, recently introduced, saw a strong start. With four more funds expected to launch shortly, investors hope this could bring fresh momentum to the market.

So far, however, these developments have not yet translated into a meaningful price recovery. The market is waiting to see whether inflows into these ETFs will be strong enough to break through the current negative sentiment.

Disclaimer: This is not financial advice. Always consider conducting your own research or seeking professional guidance before making investment decisions.