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Recent Glassnode data shows that XRP investors are in the process of locking in gains en masse.
The firm's "Realized Profit" metric determines the total profit of a digital asset based on the difference between the "buy" and "sell" prices for the tokens, where the latter is higher. The metric is particularly useful for determining how realized profits are actually concentrated at different levels.
Glassnode has noted that the token's previous profit realization waves actually aligned with price rallies: long-term holders were tempted to secure significant gains.
This time, however, profit realization soared during a significant correction. The price of the token has plunged from $3.09 to $2.3 since late September, as noted by Glassnode. During the plunge, the seven-day moving average of XRP's profit realization volume has soared from $65 million per day to $220 million per day, surging by 240%.
In late October, Glassnode also revealed that seasoned traders had started offloading the token en masse.
Bullish news fails to lift XRP
At press time, the XRP token is changing hands at $2.29, according to CoinGecko data, after plunging by more than 9% over the past week.
The price of the token is in the red on a weekly basis despite the recent Ripple Swell event, which included Nasdaq CEO Adena Friedman as well as U.S. digital asset advisor Patrick Witt among its high-profile speakers.
Such massive announcements as Ripple's $500 million funding round, the acquisition of crypto custody firm Palisade and the XRP Ledger-focused collaboration with Mastercard failed to lift the price of the struggling token.
Franklin Templeton and other ETF issuers updating their S‑1 forms for spot XRP ETFs also did not manage to put the bulls back in the driver's seat.
Judging by the recent data, intense profit-taking remains a major headwind for XRP, and even a bevy of bullish catalysts so far make it extremely challenging to ride it out.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team