XRP Bulls Face a Key Psychological Challenge: Glassnode Highlights February 2022 Similarities

Summary:
This article discusses the recent analysis by blockchain analytics firm Glassnode, which indicates that XRP's market structure resembles what was observed in February 2022. The current trends show short-term investors accumulating at lower price levels, potentially leading to psychological stress for longer-term holders.

Key Takeaways

Glassnode's analysis shows XRP's current market structure is similar to February 2022.
Short-term buyers are accumulating XRP at levels below previous holders' cost basis.
Psychological pressure on long-term holders is increasing due to these trends.
Cohort behavior differs when prices approach their cost basis.
Historical context from February 2022 reveals a pattern of volatility influenced by macroeconomic events.

Glassnode: XRP Market Structure Mirrors February 2022

Glassnode Provides Fresh Insights on XRP

Blockchain analytics firm Glassnode has reported that XRP is exhibiting a market configuration reminiscent of February 2022. The firm noted that buyers active recently are accumulating XRP at price levels that put earlier investors in a challenging position.

"XRP’s current market structure closely mirrors that of February 2022," Glassnode remarked on social media. Investors who have been active in the last week to a month are buying XRP below the cost basis of holders who have been in the market for six to twelve months.

This situation can create psychological strain among longer-term buyers as the pressure builds over time. Glassnode’s findings suggest that new demand is emerging at prices lower than what earlier holders had paid.

Understanding the behavior of different cohorts is vital, as they tend to react differently when prices return to their cost basis. When the market price drops below what certain holders paid, those investors are, on average, at a loss. If the price recovers to that previous level, some of those holders might sell to break even, adding available supply into the market and potentially limiting further price increases until that excess is absorbed.

Glassnode's “Realized Price by Age” analysis illustrates this dynamic. The accompanying chart compares realized prices of different holding durations against the spot price, revealing a noticeable gap between shorter-term holders and those holding for six to twelve months during the recent consolidation phase, echoing patterns from February 2022.

Additionally, Glassnode referred to a previous observation from November 2025, identifying a critical psychological price point where stress among holders has become evident in market transactions. Retests of this price level have led to considerable losses, highlighting that many investors have been exiting their positions at a loss, especially as prices return to that zone.

The analysis also points to XRP's past performance in February 2022, which was marked by significant volatility. After hitting a low at the beginning of the month, XRP experienced a rally to its peak, only to reverse course later as macroeconomic risks intensified. This late-month downturn corresponded with rising tensions in the Russia-Ukraine conflict, which broadly impacted risk assets, including major cryptocurrencies.

In summary, Glassnode’s insights suggest that the psychological challenges facing XRP holders today echo those experienced during a tumultuous market period in February 2022. As the market dynamics unfold, understanding these patterns may be key for investors navigating volatility in the cryptocurrency space.