Cryptocurrency markets are rarely linear. Sharp rallies are often followed by deep corrections, and understanding where price may stabilize is crucial for traders and long-term holders alike.
XRP, with its complex mix of retail and institutional dynamics, is approaching a potentially critical zone where selling pressure could be absorbed, and buyers may step in to stabilize the market.
This perspective was recently highlighted by Ali, who shared a Glassnode URPD (Unrealized Profit and Loss Distribution) chart for XRP. The analysis focuses on the potential implications if the XRP price dips below $1.77.
According to Ali, the next significant support lies at $0.79, where a concentrated cluster of unrealized losses could act as a natural demand zone. Currently trading around $1.95, XRP holders are largely in profit, but a move below $1.77 would expose roughly 5.8 billion XRP to unrealized losses, shaping market behavior.
Below $1.77, the next meaningful area of support for $XRP is $0.79. pic.twitter.com/QnKQMtPjDS
— Ali Charts (@alicharts) December 20, 2025
The URPD and Its Market Significance
The URPD metric tracks the distribution of unrealized gains and losses across holders at various price levels.
Unlike traditional technical analysis, which relies solely on price patterns, URPD provides a granular view of potential supply and demand zones based on actual holder positions. High concentrations of unrealized losses often signal areas where sellers may be hesitant, forming natural support zones.
In XRP’s context, the $0.79 level represents a dense accumulation of unrealized losses. Historical patterns suggest that such areas can attract buyers looking to capitalize on distressed holders, effectively capping further downside and providing a structural floor for the asset.
Price Path and Potential Downside
Current market action suggests that XRP could face pressure toward the $1.77 mark. If this threshold is breached, the market enters a zone with significant unrealized losses, increasing psychological stress among holders.
This may trigger either defensive accumulation from long-term investors or temporary selling from those unwilling to endure losses.
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URPD insights indicate that a drop toward $0.79 is plausible under sustained corrective conditions. This level is not arbitrary; it aligns with the concentration of past holder losses, making it a logical point for liquidity absorption and potential market stabilization.
Implications for Traders and Investors
For short-term traders, understanding URPD levels allows for more strategic entry and exit decisions. Rather than reacting solely to price swings, traders can anticipate zones where selling pressure may diminish, improving timing for positions.
Long-term holders benefit by identifying where market psychology converges with historical cost bases. Recognizing $0.79 as a potential floor helps contextualize volatility and prepares investors for temporary drawdowns without panic selling.
Preparing for the Support Test
Ali’s analysis, grounded in Glassnode on-chain data, underscores that XRP’s next critical support lies at $0.79, below the $1.77 threshold. By integrating URPD insights with price action, market participants can better understand the structural dynamics at play.
This approach highlights not just where XRP could fall, but where accumulation and resilience may naturally emerge, setting the stage for the next phase of price discovery.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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