On-chain data shows XRP profit realization has witnessed a huge spike recently, but price has rebounded back above $2.50 anyway.
The metric works by going through the transfer history of each token being transacted on the chain to see what price it was last moved at. If the previous selling price for any coin was less than the current spot price, then that coin’s sale is leading to the realization of some net profit.
Now, here is the chart shared by Glassnode that shows the trend in the 14-day moving average (MA) of the XRP Realized Profit over the past year:
As displayed in the above graph, the XRP Realized Profit has been following an uptrend since late September, indicating investors have been ramping up their profit taking. During this period, daily profit realization volume has gone up from $65 million to $220 million, an increase of a whopping 240%. This growth in the metric has come as the asset’s price has plummeted from $3.09.
In the chart, the analytics firm has also highlighted the other profit-taking sprees that the cryptocurrency has faced in the current cycle so far. Interestingly, all the other selloffs coincided with rallies in the price. The recent XRP trend has naturally been different, coming alongside a drawdown instead. “This divergence underscores distribution into weakness, not strength,” noted Glassnode.
While the Realized Profit is sitting at a significant level, XRP has still managed to turn itself around during the past day, implying a sudden influx of demand has come in that has outweighed the selling.
Bitcoin and Ethereum spot ETFs were approved by the US Securities and Exchange Commission (SEC) last year. Filings related to XRP spot ETFs are currently under review.
At the time of writing, XRP is floating around $2.56, up 13% over the last 24 hours.
