XRP is trading below its realized price, putting XRP holders on average at a loss. Priced at $1.3, the token is now at the November 2024 level. This crash in price comes in the wake of French banking group Societe Generale launching their euro-pegged digital asset, their stablecoin, on the XRP ledger.
XRP crashes as traders get rid of risky assets
XRP is in dire straits even as the market is still in extreme. As the geopolitical conditions between the U.S. and Iran escalate to almost a standoff, traders are shying away from risky assets, which are prone to volatility. With traders getting rid of their XRP coins, the demand for XRP drastically dropped, crashing the prices to November 2024 levels.
This crash cost heavily for XRP holders as the coin slipped below its realized price. The realized price is a benchmark when it comes to a coin’s price, as it represents the aggregated average price paid for the circulating supply. If a coin is below its realized price, it means, on average, holders are sitting on unrealized losses.
XRP struggles to recover above realized prices
XRP was unable to recover above its unrealized price despite the French banking group using Ripple’s ledger to launch its euro-pegged stablecoin. The digital arm of French banking group Societe Generale, SG-FORGE, launched the stablecoin with the hopes of increasing adoption and benefiting from the scalability, speed, and low cost of the XRPL, a secure and decentralized Layer 1 blockchain.
As shown in the chart below, XRP has been crashing since July of last year. From reaching prices above $3.5, the coin has now crashed to $1.3, shedding more than 60% of its price within the last 7 months.
With this huge crash, XRP is now at November 2024 levels, as it still tries to find a support level to cushion the fall. If XRP continues to crash, the next support level could be somewhere close to $1.04.
