XRP News Today: Crypto Market Faces Bearish Trend as Major Assets Show Losses

As the crypto market navigates a phase of heightened uncertainty, the mid-term cost basis of buyers from late 2024 to early 2025 presents a mixed outlook. While some assets are still performing positively, others are showing clear signs of being in a bear market. Recent price action has seen a stabilization that has formed new support zones, but these zones are below the levels where mid-term holders would prefer them to be. This situation indicates that many mid-term holders are currently experiencing losses, which is a significant indicator of market sentiment.

When the market price falls below the cost basis of major investor cohorts, it signals that these investors are likely experiencing losses and are unlikely to be buying anytime soon. This cautious sentiment is warranted for most types of investments in the current market environment. The stabilization of prices has formed new support zones, but these zones are not where mid-term holders would want them to be, indicating a bearish trend.

Solana (SOL) was bought at an average price of $146 during the euphoric market period between December 2024 and January 2025. With current prices down by about 28%, investors in SOL are facing substantial paper losses. The deep crimson seen in performance indicates that the asset has lost the momentum needed to move up in price and may find it hard to move back into a bullish position without a strong catalyst.

Ethereum (ETH) tells a similar story. Investors who entered the market around $1,800 and are now holding ETH are looking at a 36% loss. This is the worst performance among the assets tracked in this group. If ETH cannot hold above the $1,800 threshold, there could be even more asset dumping from frustrated mid-term holders.

Bitcoin (BTC), the largest and most dominant crypto asset, is also in a tight spot. With euphoric buyers having entered at around $95,000, BTC is now slightly below that figure, posting a 1% loss. While this may appear marginal, the psychological implications of BTC trading below a key recent cost basis are important. Historically, when Bitcoin fails to hold the average entry price of medium-term holders, it can trigger broader market corrections or stagnation.

Ripple’s XRP is the one clear exception, still showing positive price movement. Investors who bought XRP during the euphoric rally at $2.14 are currently enjoying an approximately 11% return on their investment. However, this bullish trend could end in the near future. Market analyst Ali Martinez suggests that XRP might be due for a pullback in the short term, noting that a TD Sequential sell signal has shown up on XRP’s 3-day chart. This could indicate that XRP is about to take a breather and give back some of its recent gains.

XRP’s level of importance is within the range of $2 to $2.26. If it closes outside of this decisive level, it could determine the next major trend for XRP. A close above $2.26 would negate the current bearish market setup and initiate new buying interest. A close below $2, however, would confirm the current sell signal and likely initiate further downside momentum. XRP has become a point of focus for traders, given its strong performance relative to peers. If it doesn’t hold onto those gains, it could take a further large chunk out of market sentiment.

The larger issue points to a crypto market that is in a presently precarious condition. When pricing holds below a 3-to-6-month cost basis—a halfway mark nearly always representing conviction and a medium-term outlook—it signals a weak market structure. What we have at this moment is a market around that cost basis, with no clear uptrend, and sellers potentially emboldened by the profit incentive to keep pushing prices down. There is a good chance the market will stay in this beat-up, cautious sentiment until we see either renewed momentum from the market itself or have macro-level catalysts come in and drive prices above these key levels. In the evolving crypto cycle, assets like XRP and BTC could serve as leading indicators for where things go next. At present, the mood is very cautious, and for many top buyers in this space, the pain is being felt in a real way.