Analysts at Santiment explained that this profitability metric is often used to assess investor sentiment. According to them, a higher percentage of profitable wallets can lead to near-term sell pressure as holders take profits.
But when most investors are at a loss, markets often show signs of fear or undervaluation, which can attract new buyers and long-term capital.
Still, despite a recent 6% dip in XRP’s price this week, the strong on-chain profitability could indicate a foundation for a potential rebound.
Market analysts suggest developments beyond price charts could catalyze XRP’s next growth phase.
Nevertheless, the broader market sentiment on the XRP remains largely positive because the token has drawn notable attention.
In addition, the XRP Ledger (XRPL) is experiencing rapid expansion within its ecosystem, as evidenced by its adoption by major institutions.
Together, these developments suggest growing institutional confidence and a broader push toward XRP adoption, which could bolster its price.
