XRP continues to trade at $2.15 after a sudden rally that began in November 2024. Statistics show that many early investors have started to take profits.
Rally Fueled by Legal Clarity and ETF Optimism
The rally that began in November 2024 was driven by multiple factors. Ripple's conflict with the SEC had begun to subside, providing investors with much-needed clarity. Additionally, major asset managers like WisdomTree, Bitwise, and CoinShares filed applications for XRP-based exchange-traded funds, fueling positive sentiment, which led to a price increase from below $0.60 to over $2.10 within a few weeks.
Data Shows Wave of Profit-Taking
According to Glassnode, early investors began to lock in profits. By early June, daily profit realization climbed to $68.8 million, indicating widespread distribution among long-term holders. There has also been heightened whale activity, with millions of XRP tokens transferred to exchanges, pointing to intentional sell-offs at key resistance levels.
Retail Growth Balances Whale Distribution
While whale activity is observed, retail activity is also on the rise. Daily active addresses surged nearly 490% from cycle lows, and XRP's realized market cap jumped from $30 billion to $64 billion. However, there are signs of caution among newer investors. The realized loss/profit ratio has been declining, indicating a waning speculative appetite.
Currently, XRP is at a crucial inflection point. The market imbalance between accumulation and profit realization indicates that the next move towards growth or decline will be determined by bulls' ability to regain momentum.
