XRP profit realization surged 240% since late September, signaling distribution. Despite this selling pressure, the price rebounded above $2.50 on strong ETF anticipation.
On-chain data confirms that XRP profit realization has recently witnessed a huge spike. This profit-taking is happening even though the price recovered to above $2.50. This divergence indicates a rude market struggle between sellers and new institutional demands.
XRP Rebounds Above $2.50 After Heavy Profit Realization
According to Glassnode, an on-chain analytical company, the Realized Profit volume (a 7-day simple moving average) rose by about 240% since late September. The amount rose from $65 million a day to $220 million a day. This metric is used to measure the total amount of profits that investors are “realizing” through their daily transactions.
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Unlike the previous waves in profit realization that were usually in line with price rallies, this one was seen as XRP declined from $3.09 to $2.30. This divergence highlights distribution into weakness, not strength. It is a sign that long-term holders are closing positions to preserve capital.
The massive surge in profit-taking obviously helped with a price decline. The selling pressure led down from XRP’s previous high of $3.09 to the low of $2.30 in early November. This was a classic market correction as long-term holders capitalized on the run-up in the price, took their profits from the massive gains made in late 2024.
Despite this intense correction, XRP’s price put on a powerful rebound. The XRP token recently experienced a rise of more than 9% in a 24-hour span, with the price rising to around 2.52 to $2.53. This strong recovery suggests that the rush of new demand has been able to overcome that massive selling pressure from previously invested individuals.
The recent rebound is being propelled by a number of strong bullish factors. Foremost among these is development around the spot XRP exchange-traded funds (ETFs). Multiple firms, such as 21Shares, Bitwise, Franklin Templeton, and Canary Capital, have filed or amended registration statements for spot XRP ETFs.
XRP Rally Strengthened by DTCC Listings and ETF Hopes
One of the positive signals for increased institutional access was the listing of the DTCC (Depository Trust and Clearing Corporation). The DTCC mentioned a number of products that used XRP as currency under its “active and pre-launch” category. This move is usually seen as a good sign that issuers are getting ready to make a big round trip in the market. This regulatory progress was what directly fueled the renewed rally.
There is a strong institutional interest, which also influences the price in favor of the price. Ripple’s large funding round of $500 million recently, and other developments point to significant institutional involvement. This interest over a prolonged period is a basic support for the valuation of XRP.
The present movement of markets is an active struggle. It is a battle between the people who made money over the long haul and those who are looking to make money in the future. These future gains are anticipated to be from mainstream institutional investment through ETFs. Some analysts indicate there is the possibility of another rally towards $3 or more in the near term if the ETF approvals come soon.
In conclusion, there are conflicting market forces at work for XRP. Whilst in-chain data shows aggressive profit realization by early entrants, there has been a strong rehabilitation of price. This recovery is supported by important regulatory milestones and strong institutional interest surrounding the possibility of releasing spot XRP ETFs. The market is still keenly focused on the imminent regulatory decisions.
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