XRP (XRP) is having a rough week, down 8% over the past seven days. But if you're waiting for traders to panic, you might be disappointed.

Traders Rebuilding Positions

Prominent trader DonAlt says he's slowly rebuilding his XRP position, pointing to the asset's strong relative performance compared to other cryptos. While he's not ready to jump back into most altcoins, he's keeping his XRP exposure as the market recalibrates.

Here's the interesting part: DonAlt doesn't think the market has topped out. He sees parallels to XRP's explosive run from his earlier call near $0.60. Sure, Bitcoin's price action "looks terrible" right now, but he expects XRP to outperform once BTC stops dragging down altcoins.

The setup? A "full send" move is brewing. If XRP cleanly breaks above a key red resistance level, it would reclaim all the losses from the October 10 dump—a powerful bullish signal that could send prices sharply higher.

The Numbers Tell a Story

Glassnode data reveals something crucial: only 58.5% of XRP's supply is currently in profit. That's the lowest level since November 2024, when XRP traded around $0.53. Translation? About 41.5% of the supply—roughly 26.5 billion XRP—is underwater.

This creates a double-edged situation. On one hand, selling pressure from trapped holders remains elevated. On the other hand, historically these deep resets have preceded strong mean-reversion rallies in XRP.

Beyond the Price Action

Meanwhile, Ripple CTO David Schwartz noted that the XRP Ledger, launched way back in 2012, is entering a fresh phase of evolution. With XRP's expanding role in DeFi through Flare, MoreMarkets, Axelar, and Doppler, plus ongoing work on programmability and smart-contract features, the timing looks right to explore new native DeFi capabilities.

The question now: can XRP deliver that breakout traders are watching for?