XRP has entered a critical phase as on-chain data shows rising losses and panic selling among holders. Glassnode data reveals that the Spent Output Profit Ratio has dropped below 1, signaling capitulation. At the same time, debate grows over Ripple’s RLUSD stablecoin and its potential long-term impact on XRP demand.
Glassnode data shows that XRP’s Spent Output Profit Ratio fell from 1.16 on July 25, 2025, to 0.96. A reading below 1 indicates that holders sell at a loss. This shift marks a sharp change in profitability. Analysts compared the current setup to the period between September 2021 and May 2022. During that cycle, XRP’s SOPR stayed below 1 for months. A prolonged consolidation followed before price stabilization emerged.
Meanwhile, price action reflects persistent weakness. Since August 2025, XRP has trended downward. Short recoveries failed to hold. By late October, the token had fallen 27% from $3.5 in mid-July to $2.4.
At the same time, long-term holders increased their spending activity. Investors who accumulated before November 2024 raised daily spending by 580%. Their average jumped from $38 million to $260 million per day. Those flows continued into early November. Analysts noted that this behavior differed from past rallies. Instead of selling into strength, experienced holders distributed into weakness, adding pressure to the price.
By mid-November, only 58.5% of the XRP supply remained in profit. That marked the lowest level since November 2024, when XRP traded at $0.53. Despite trading near $2.15, more than 41% of the supply sat in losses.
The profit-to-loss imbalance suggests structural fragility. Even at prices four times higher than November 2024, a large share of supply remains underwater. Late buyers now dominate the market structure. Analysts described the setup as top-heavy. Loss concentration among newer entrants increases sensitivity to volatility. As selling pressure builds, price stability weakens further.
Unlike previous profit-taking waves that followed rallies, this distribution emerged during decline. That pattern signals stress among experienced participants. As a result, XRP faces sustained downward pressure.
Still, fresh claims circulating in crypto circles introduce a different narrative. Alleged leaked documents and institutional reports suggest a larger long-term role for XRP within Ripple’s expanding payments network. These claims remain unverified. Yet they continue to fuel discussion about institutional adoption and the role of Ripple’s new stablecoin strategy.
According to circulating claims, Ripple’s planned RLUSD stablecoin will not replace XRP. Instead, the token would expand institutional use of the XRP Ledger. Analysts referenced in discussions suggest integration into settlement and trading systems.
Under that model, institutions could use RLUSD for dollar-based transactions while relying on XRP as a bridge asset. XRP would facilitate cross-border liquidity between currencies and markets.
If institutions adopt that structure, XRP demand could rise over time. Settlement flows might require XRP to move value between different currency pairs. That linkage would connect stablecoin activity to XRP liquidity. The broader stablecoin market remains dominated by USDT and USDC. Some institutional analyses predict a more competitive landscape as new issuers enter. Ripple’s RLUSD aims to target institutional payment flows.
Observers note that large-scale settlement networks could drive increased activity on Ripple infrastructure. That activity could indirectly raise XRP usage within liquidity corridors. Another controversial claim involves alleged legal documentation. Supporters argue that XRP functions as an operational access right within Ripple’s ecosystem. They claim that system functions require XRP participation.
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Experts caution that these interpretations lack official confirmation. Until Ripple releases formal filings or statements, such classifications remain speculative. Ripple has also outlined plans for compliance-focused institutional decentralized finance on the XRP Ledger. In those plans, XRP serves as both a settlement asset and a bridge asset.
Ripple CEO Brad Garlinghouse has repeatedly stated that XRP remains central to the company’s long-term strategy. As Ripple expands into stablecoins and institutional finance, market participants now face one pivotal question: will capitulation give way to structural recovery or deeper consolidation?
XRP’s capitulation signal has strengthened as SOPR fell below 1 and on-chain profitability turned negative. Long-term holders increased distribution during the decline, while supply in profit dropped sharply. At the same time, Ripple’s RLUSD stablecoin strategy has sparked debate about future XRP Ledger demand. Market participants now watch liquidity and adoption trends closely.