XRP Enters Stop-Loss Phase as Profitability Turns Negative

XRP enters a “stop-loss” phase after on-chain data proved that holder profitability has become negative for the first time since 2022. This is an indicator that most sellers are currently selling at a loss, adding to the downward pressure on the overall market.

At press time on February 10, XRP traded at approximately $1.44, representing a drop of roughly 1% during the last 24 hours and a drop of roughly 12% during the last seven days. This is after a larger drop in XRP’s price from a high of $3.65 in 2025.

XRP’s Recent Price Drop

The primary indicator of XRP’s recent price drop comes from the Spent Output Profit Ratio (SOPR). This measures whether coins are sold at a profit or at a loss.

According to data from Glassnode, XRP has lost the aggregate cost basis of all holders. As such, the market is currently entering a “stop-loss” phase.

The 7-day Exponential Moving Average (EMA) of SOPR has fallen from 1.16 in July 2025 to 0.96. This marks the first sustained fall of the 7-day EMA of SOPR below 1.0 since 2022.

When SOPR falls below 1.0, it means that, on average, holders are selling their coins at a loss. According to Glassnode, the current situation is similar to that of the September 2021 to May 2022 period. During this period, SOPR fell below 1.0 for multiple months before eventually stabilizing.

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Large Holders Are Waiting For A Clearer Signal

Additional data from CryptoQuant gives further insight into the type of behavior seen in the market. According to analyst PelinayPA, the whale-to-exchange flow is still at relatively historical low levels.

CryptoQuant analyzed the whale-to-exchange flow, showing that no significant selling has come from whales despite the recent price drop. Smaller investors are primarily responsible for the panic selling seen in the market. 

Larger holders appear to be waiting for a clear sign of a price opportunity to begin buying again. Such trends were also observed in previous market cycles, often preceding a period of sideways movement or a slow and steady recovery.

Source: CryptoQuant

Mixed Signals From Derivative Markets

According to the latest data from CoinGlass, there is a mix of activity in the XRP derivative market. Trading volume of the coin’s futures is approximately $5.47 billion, which represents a 6.06% increase in the last 24 hours. Open interest is approximately $2.47 billion after a very small increase of 0.06%.

The increase in open interest indicates that traders are holding onto their positions instead of closing them out in response to the recent price drop. However, it does not indicate a sense of panic in the market. 

Price Action Remains Weak

Based on the TradingView chart, XRP continues to establish new lower highs, creating a bearish trend. The 50-day and 100-day EMAs are sloping downward and sitting above the current price, meaning that XRP faces repeated rejection when it attempts to rally.

The coin is also trading near the lower Bollinger Bands, and the RSI remains below 50, indicating poor momentum. Previous support for XRP between $1.45 and $1.50 has been turned into resistance. If selling pressure continues, the next area of support will be at $1.35-$1.30, and even $1.20 should the price break through that level.

Source: TradingView

Why This Matters

If XRP falls below key profitability levels, it is a signal that loss-driven selling is occurring, and low whale exchange flows indicate that large holders are not selling just yet.

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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.