• XRP faces rising pressure as demand weakens across spot and derivatives markets.
• Profit supply drops, signaling heavier unrealized losses among many holders.
• Key support holds, but bearish momentum threatens deeper short-term declines.

A soft pullback has started to worry many traders who follow Ripple’s XRP closely. Market activity shows weaker enthusiasm across several areas, creating tension for anyone hoping for near-term strength. The price still holds above $2.25, although pressure keeps rising each hour. A cautious mood spreads across the broader market, and that mood influences XRP heavily. Many participants now watch supply trends, demand signals, and technical levels with growing concern.

Shrinking Profit Supply Fuels Bearish Sentiment

Glassnode data shows a notable drop in the Supply in Profit metric. The current reading hovers near 44 million XRP, far from the 64 million peak in mid-July. That decline reflects rising unrealized losses among many holders. Lower profit levels often weaken confidence, reduce liquidity, and limit positive momentum.

The trend also exposes heavy exhaustion among long-term supporters. A one-year low appeared earlier this month, and that threshold highlights mounting pressure across the ecosystem. A prolonged decline may also reduce the number of tokens available for sale, which often leads to stronger demand once sentiment shifts. Many traders now wait for a pivot that could spark renewed buying activity.

Retail participation remains weak. Derivatives data from CoinGlass shows futures Open Interest near $3.78 billion, barely above the previous day. The number still trails the $4.17 billion level recorded on November 1. A steady increase in Open Interest often confirms growing confidence. That confirmation remains absent, leaving traders cautious.

XRP still trades above $2.25, although bearish pressure surrounds the market. A position under major moving averages shows strong resistance above current levels. The 50-day EMA sits near $2.53, with the 200-day EMA at $2.57 and the 100-day EMA near $2.63. Those levels form a ceiling that many bulls struggle to clear.

What Next for XRP Holders?

Some traders still expect a rebound if buyers step in soon. A strong wave of demand could lift the market above short-term resistance levels. Many watch for increased activity from experienced participants who often lead early recovery phases. A stronger inflow could help XRP challenge the 50-day, 100-day, and 200-day EMAs.

A recovery remains possible with improved sentiment. A heavy correction often produces fresh opportunities for patient investors. A rise in demand may confirm a shift toward accumulation. Market participants now wait for stronger signals from both derivatives and spot trading volumes.

XRP stands at a sensitive point. Market confidence needs reinforcement from retail traders and larger players. A solid rebound requires stronger volume, rising Open Interest, and a clear shift in momentum. Traders continue to monitor every signal closely as pressure builds across the market.