Oops, 60% of XRP Supply Just Moved Into 'Scorched Earth' Territory—And Binance Liquidity Has Basically Left the Chat

While the broader crypto market throws its usual tantrum of volatility, $XRP is stubbornly parked below the $1.5 resistance level, refusing to cooperate with anyone's mooning expectations. It's giving main character energy—just not the good kind.

After a sharp price decline, $XRP market dynamics are shifting into pain territory. Researcher and investor BankXRP reports that a growing chunk of the leading altcoin is slipping into the loss zone as price momentum continues its fade. Over 60% of the entire supply—roughly 36.8 billion $XRP—is now sitting in loss territory, representing more than $50 billion in unrealized losses. To put that in perspective, that's enough red to make a tomato look pale.

When a massive portion of supply is swimming in red, it typically signals fading confidence. A prolonged period of stagnation or decline doesn't do any favors for recent buyers' profit margins. Nothing says "I regret this purchase" quite like checking your portfolio at 3 AM and questioning every life decision that led you here.

For those who scooped up $XRP above its current $1.35 price, the breakeven point sits around $1.44. Whether the price dips further or stages a comeback largely depends on this delicate trend. It's basically the financial equivalent of that moment when you're down $50 at the casino and deciding whether to chase or cut your losses.

BankXRP notes that selling pressure could emerge near the $1.44 level as underwater holders throw in the towel. On the flip side, a long-term perspective suggests $XRP could clear a bull run, facing less resistance in a classic cycle pattern. Diamond hands versus paper hands, round infinity.

Meanwhile, $XRP liquidity on crypto exchanges is flipping negative, with order books getting thinner by the day. Arthur, CIO of Royal Peak Cap, points out that the liquidity crunch is especially brutal on Binance, the world's largest trading platform, which has basically collapsed. The 30-day liquidity index has dropped to historically low levels near zero—a result of trading volume plummeting from over $200 billion in January 2025 to nearly nothing today. That's not a liquidity crunch, that's a liquidity ghost town.

This creates a classic double-edged situation. Bulls might argue that long-term holders aren't selling, leaving exchange supply extremely thin, meaning any real buying pressure could trigger sharp upward moves. Bears would point to traders' fading interest and a wait-and-see mentality. Basically, hodlers are holding their breath while everyone else scrolls past $XRP tweets.

Historically, periods of extremely low liquidity tend to precede major price moves in both directions. Buckle up, buttercup.

$XRP trades at $1.31 on the 1D chart | Source: XRPUSDT on Tradingview.com