The price $XRP ended a two-year streak, as it prepares to close in 2025 with losses.
XRP's fourth quarter began under significant pressure after a sharp sell-off wiped out most of its previous gains. The decline in the fourth quarter has put the currency on track to close 2025 in negative territory.
The hope continues that the buying activity from investors will attempt to reverse the momentum before the end of the year.
XRP holders sold at a loss
On-chain realized profit and loss data show that fourth-quarter sell-offs were unusually aggressive. XRP holders exited their positions at a loss, indicating a deterioration in confidence. Historically, investors in large-cap tokens tend to hold during downturns, hoping for eventual recovery rather than realizing losses.
This cycle has proven to be different. Selling at a loss indicates a rising uncertainty regarding XRP's near-term outlook. Behaviors have shown that risk aversion has overshadowed long-term conviction, contributing to ongoing downward pressure during the quarter.
Would you like to see more insights related to tokens like this? Subscribe to the daily cryptocurrency newsletter prepared by editor Harsh Notaria from here.
The broader context of XRP's performance highlights the ongoing challenge. The current market cycle threatens to end a two-year streak of positive annual returns. In 2023, XRP rose by 81%, followed by a rise of 238% in 2024 due to increased regulatory clarity and speculative demand.
In contrast, 2025 is marked by weaker momentum. If current levels persist, XRP may close the year down nearly 11%. This change highlights how broader economic conditions and investor sentiment can disrupt even the strongest historical trends.
Despite the decline, XRP's ledger activity fell in late December. Network data shows that the number of active addresses executing transactions reached a monthly low of 34,005. The decline in participation indicates weak renewed interaction from individual users and institutions.
An increase in transaction activity is often associated with improved demand. Declining usage supports price declines by affecting liquidity and losing interest based on practical utility. This year-end retreat may reflect a strategic positioning before 2026 rather than short-term speculation.
XRP is trading near $1.85 at the time of this report, down 11% since the start of 2025. To offset annual losses, the token must recover to $2.10. Achieving this level would allow XRP to end the year unchanged, maintaining its long-term performance record.
However, for now, the risk of a downturn remains if market conditions worsen. Failure to maintain $1.85 could lead to a drop towards $1.70. The execution of this move would confirm the falsity of the bullish trend and affirm a negative annual close, prolonging uncertainty until early 2026.#
