Recent data from Glassnode reveals that XRP investors are locking in gains en masse. The firm’s “Realized Profit” metric calculates the total profit of a digital asset based on the difference between the “buy” and “sell” prices for the tokens, with profits recognized when the selling price exceeds the buying price. This metric is particularly useful for understanding how realized profits are concentrated across different investor levels.
Glassnode has observed that previous waves of profit realization for XRP typically aligned with price rallies, as long-term holders were enticed to secure significant gains. However, this time around, profit realization has soared amid a significant market correction.
Since late September, the price of XRP has plunged from $3.09 to $2.30, according to Glassnode’s data. During this decline, the seven-day moving average of XRP’s profit realization volume surged from $65 million per day to $220 million per day — an increase of 240%. Additionally, in late October, Glassnode noted that seasoned traders began offloading the token in large volumes.
### Bullish News Fails to Lift XRP
At the time of writing, XRP is trading at $2.29, as reported by CoinGecko, marking more than a 9% decline over the past week. Despite the recent Ripple Swell event, which featured high-profile speakers such as Nasdaq CEO Adena Friedman and U.S. digital asset advisor Patrick Witt, the token remains in the red on a weekly basis.
Several major announcements, including Ripple’s $500 million funding round, the acquisition of crypto custody firm Palisade, and an XRP Ledger-focused collaboration with Mastercard, have failed to buoy the struggling token’s price. Moreover, updates to S-1 forms by Franklin Templeton and other ETF issuers for spot XRP ETFs have not been enough to reignite bullish momentum.
### Intense Profit-Taking Continues to Weigh on XRP
Judging by recent data, intense profit-taking remains a significant headwind for XRP. Even with a host of positive developments and bullish catalysts, it has proven extremely challenging for the token to sustain upward momentum. Investors and traders alike appear cautious, suggesting that the market may need more time to absorb these events before a potential recovery can take hold.
https://bitcoinethereumnews.com/tech/xrp-profit-realization-surges-by-240/
