XRP Investors At Near Loss Levels. Here’s the Significance

Crypto analyst Steph Is Crypto (@Steph_iscrypto) has released a new chart indicating a significant change in the sentiment of XRP investors. The analyst highlighted a sharp drop in the Net Unrealized Profit/Loss (NUPL) indicator below the 0.25 threshold, suggesting that investors are now positioned near loss levels.

XRP is currently trading at $2.05, marking a decline of nearly 7% over the past week. Steph's analysis, visualized through a chart, points to a decrease in market sentiment that coincides with the falling price, altering how investors perceive short-term risk.

Understanding the Current NUPL Position

The accompanying chart illustrates the NUPL levels in relation to XRP's price from late 2024 through the end of 2025. It emphasizes the beginning of a downward trend that has brought the NUPL reading into a zone signaling diminished investor confidence. This analysis serves as a crucial reminder that market sentiment can shift rapidly as prices move through significant levels.

While sentiment was notably positive in early November, the chart documents a clear transition from strong belief to a state of anxiety. The indicator has now fallen below 0.25, a level that suggests many investors are holding positions with smaller unrealized gains or are experiencing unrealized losses. This condition is closely monitored by traders as it reflects the reaction of long-term holdings to evolving market structures.

The emergence of negative indicators began in late November and intensified during the initial days of December. This decline in sentiment is mirrored by XRP's price trajectory, with the cryptocurrency currently trading near the lower end of its recent range, around the $2 mark.

Impact on XRP Holders

A NUPL reading below 0.25 often indicates stress among short-term market participants, many of whom acquired their positions during periods of higher market confidence. The current chart suggests these investors are now awaiting a price recovery to reinstate their earlier gains.

However, long-term XRP holders remain above the levels that historically signaled capitulation in late 2024. This divergence indicates that the market has not yet reached those extreme conditions.

This price dip also presents a potential opportunity. As XRP's price moves lower, astute investors may see this as a chance to accumulate tokens as less committed holders exit the market. Steph's latest update provides a critical checkpoint for those tracking XRP's performance throughout 2025. While the drop in NUPL does not inherently signal a market breakdown, it clearly signifies a shift in how the average investor is experiencing current price levels.

Future Outlook for XRP

XRP continues to trade within a market structure that could facilitate an upward move should buying pressure increase. The NUPL chart shows early indications of stabilization, and a firm base often precedes a more robust shift in sentiment. If market momentum returns, the observed NUPL shift could be reversed relatively quickly.

XRP has a proven history of recovering from similar market positions. The current downturn is considerably less severe than the extremes observed before its last major rally, suggesting that a path toward recovery remains viable.