On-chain data from Glassnode revealed the reason why the price of XRP has been continuously decreasing since 2025. Notably, the price of XRP has fallen since. up from $3 last year and has been falling ever since. While many in the crypto space believed that XRP could eventually return to the $3 level, cryptocurrency continued to struggleissuing more gains each month amid more market weakness and mood swings.
Why XRP Price Keeps Falling From 2025
Glassnode has mentioned it Long term price correction of XRP from 2025 to changes in investor behavior driven by weakening on-chain profits and growing losses among owners. According to the data, XRP he fell under the owner’s cost base, which represents the price at which current investors receive their tokens.
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When the cryptocurrency trades below this level, a large part of the the owners are technically underwaterwhich means they are in awe. This situation usually leads selling panic as investors try to limit further losses, increasing selling pressure on assets and intensifying price declines.
The main evidence supporting this view is i Spent Output Profit Ratio (SOPR)measured using the seven-day Exponential Moving Average (EMA). SOPR tracks whether the coins transferred or traded on the blockchain are made at a profit or loss. Glassnode chart exhibitions that XRP’s SOPR dropped from around 1.6 in July 2025 to around 0.96 recently.
Notably, a value above 1 indicates that the owners are selling at a profit, while a value below that indicates that the coins are being sold at a loss. This continued movement below the neutral level suggests that much trading activity in XRP now it happens in loss rather than profit taking situations.
As a result, the on-chain profit of XRP holders has become negative. Such a situation often reduces investor confidence in cryptocurrency and reduces the incentive to hold it, especially among short-term traders. Negative profits may also discourage new investment, as buyers see limited signs of recovery or momentum, further contributing to price declines or stagnation.
XRP Structure Mirrors Bearish 2022 Setup
Interestingly, Glassnode noted that Current XRP market structure it is very similar to the period between September 2021 and May 2022. During that previous phase, XRP’s SOPR also dropped below 1 and stayed there for a long time.
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The period was also marked by long consolidation and low volatility following major declines, before the market finally stabilized. This comparison suggests that XRP may face a similar structural phase where losses dominate trading activity and recovery is delayed until sales slow down again the feeling goes back to a positive place.
As of writing, the price of XRP has dropped further, now trading below $1.4. CoinMarketCap data shows that the cryptocurrency is down more than 4.3% in the last 24 hours and more than 46% year to date.
Featured image from Freepik, chart from Tradingview.com
