90% of the XRP supply is in profit as the Ripple’s token hovers close to the $3 price level. With many traders holding XRP having unrealized profits, the future of XRP’s price is at risk of a major sell off.
As the legal battle between XRP and the U.S. Securities and Exchange Commission (SEC), reaches a settlement phase, most of the XRP holders are in profits. The XRP vs SEC legal battle started back in 2020, when the regulator sued Ripple for issuing securities. However, Ripple stated that the XRP was not a security.
The case went back and forth for almost half a decade, before the duo filed a joint dismissal of their respective appeal, on August 7, 2025. Initially, the SEC demanded Ripple to pay $2 billion as settlement, however, the amount was brought down to $125 million.
XRP third on CoinMarketCap’s trending list, despite losing value
XRP has taken the third position on CoinMarketCap’s trending list, even after losing value during the week. XRP was trading at a weekly opening market price was $3.26 when the markets opened for trading. As the week progressed the token started shedding value and reached $2.9. With many of the XRP holders with unrealized profits, the fear of a major sell off is real.
XRP holders in profit, what does this mean?
It means the vast majority of investors bought XRP at lower prices. This often reflects strong momentum and can attract new buyers who don’t want to miss the rally. On the other hand when too many holders (90%) are sitting on gains, some will want to cash out. This creates selling pressure, which can cap the rally or trigger corrections.
Historic selloffs when 90% of XRP supply was in profit
In January 2018, when XRP’s price was near its all-time high of around $3.30, over 90% of the circulating supply was in profit. This was followed by a massive 95% price correction.
A similar pattern was observed in April 2021, when the profitability metric again rose above 90% near XRP’s peak of around $1.95, which preceded an 85% decline.
XRP analyst expects the prices to drop to $2
On the daily, crypto analyst, Ali saw the bears crash the prices below the $3 level and he wrote “$XRP just lost another support level at $3, and could be heading to $2.60 or even $2.”
Even on the four hour chart, the bearish outlooks is unmissable. XRP has fallen below the lower trendline of the symmetrical triangle, showing the strength of the bears. The red long candlesticks shows that trades have already begun taking profits.
The RSI is under the SMA, and this a bearish signal and it means that XRP is performing below par. Even the bear bull power, indicator which detects the presence of the bears and bulls has shifted in favor of the bear. As such, XRP may fall to $2, if the support level near $2.7 doesn’t come to the rescue.
