XRP Traders Face $50B in Unrealized Losses as Price Slips Below $1.40

XRP price has taken a brutal hit.

The token is down about 63% from its multi-year high and has slipped below $1.40. That drop has left more than $50.8 billion in unrealized losses in XRP, with a large portion of holders now underwater.

With price hovering near $1.35, traders are facing a big question. Is this deep pullback finally forming a market bottom, or is more downside still ahead?

The answer likely comes down to a few key levels that could decide where XRP moves next.

What the $50B Unrealized Loss Figure Actually Means for XRP Holders

On-chain data shows how heavy the pressure has become.

According to Glassnode, about 36.8 billion XRP are currently held at a loss. That puts the average holder cost around $1.44, meaning a large portion of investors are underwater while price trades below that level.

That creates an interesting dynamic. Traders sitting at a loss usually avoid selling unless support breaks and panic kicks in. But the moment price recovers near their entry, many rush to exit at break-even, turning that area into strong resistance.

At the same time, broader market pressure is not helping. XRP ETFs have seen steady outflows, including a $16.2 million redemption late last week.

With so many holders trapped and liquidity thinning, any sharp drop below current support could trigger a wave of forced selling.

Capitulation Risk: The Levels That Change Everything for XRP Price

Right now, everything revolves around a few key levels on the chart.

The biggest danger sits at $1.28. That is the monthly low XRP printed when momentum completely stalled earlier this year. If price breaks below that level, the next downside target appears near $1.11.

On the other hand, buyers have been defending the $1.31 to $1.34 zone. This area has repeatedly absorbed selling pressure and helped stabilize the market during recent dips.

For sentiment to improve, XRP needs to climb back above $1.48. That level roughly matches the average cost basis for many holders, meaning a recovery there could remove some of the heavy selling pressure.

In the short term, $1.43 is the first barrier to watch. A daily close above it would suggest the market is starting to recover.