XRP Price Turns Green — 62% of Ripple Holders Are New: Bull Run or Bear Trap? Glassnode Warns

After a few days of seeing consecutive downtrends, the XRP token is back into the green today, as the crypto market recovers. Currently trading at the $2 price point, the daily XRP price surge has reached 11.32% today. However, today XRP news might signal a bearish future for XRP short-term price action. This is because, as the chain data shows, most of the XRP Realized Gap belongs to new investors. The recent decline in XRP value could cause a huge slide if these new investors panic sell.

How Did XRP’s Realized Cap Skyrocket from $30B to $64B?

Based on a new report from Glassnode on-chain analytics, the XRP Realized Cap has changed significantly recently. The Realized Cap is the statistics related to the amount of capital each investor has spent on the asset. As such, each point of inflow pushes this metric higher, and outflow causes a decline, leading to investors changing this indicator. Based on the reported data, XRP Realized Cap has seen an explosive increase in the last few months. This seems to be caused by the recent rallies for the asset, as its value grew almost 400% last year.

Investors have poured in massive amounts of capital because of the XRP price surge during November and December of 2024. This has almost doubled the Realized Cap of XRP, going from $30.1 billion to $64.2 billion. This, in turn, has caused the number of new and young investors to skyrocket as well. Specifically, the number of 1 to 3-month and 3 to 6-month investors has increased drastically. When we analyze the price action, this spike is logical, as XRP price surges have also happened in these timeframes.

How Do New XRP Investors Impact Market Stability?

The report also gave an analysis of these circumstances, mentioning that this sharp increase in new investors shows retail interest. Additionally, after the price of XRP token consolidated above the $2 point, we can see that the growth of new investors also stops. This also points toward increased interest from the retail investment sector. As such, we are also seeing a change in the dominance of different investor groups. 

Chart 1 – Provided by Glassnode, published on Glassnode, April 10 2025

As per Chart 1 shared by Glassnode, before the recent major change in realised capital, the investor shares were very different. The Realized Cap controlled by new investors was only 23%; however, now this number stands at 62.8%. As such, now 6-month or lower age investors have the dominance and control of 62.8% of XRP invested capital. Although this can also be interpreted as a sign of investor confidence, it also signals a dangerous imbalance.

Why Are So Many XRP Holders Currently in the Red?

In the past few days, during which XRP experienced massive crashes, the XRP value went below its moving averages. As such, many new investors are now holding XRP at a loss and could start selling at any moment. Additionally, if the cycle of panic selling starts, this group, which is already in a loss, would be the first to sell. Glassnode also commented on this. Stating “This rapid concentration in new holders reflects strong retail involvement – but also raises the risk of fragility, as many hold elevated cost bases,”

Is XRP Preparing for Another Price Surge?

However, if XRP can hold to its current price level, the new investor could become a long-term XRP holder. This, in turn, would lower the volatility and lead to a period of stagnation and lower inflows for XRP. This, however, is not negative, as you can see in Chart 1, before each peak, XRP inflows had been lowered. In such circumstances, with bullish XRP news, the price action might start rallying again. 

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