XRP Defies Odds with 240% Profit Surge as Price Rebounds to $2.56
XRP has recently shown remarkable resilience, with its price rallying past $2.50, even as on-chain data reveals a staggering 240% increase in profit-taking activity among investors since late September. This unexpected market dynamic highlights a unique phase for the digital asset, contrasting with historical trends.
XRP's Unconventional Profit Rally
According to on-chain analytics firm Glassnode, XRP's "Realized Profit" — a metric tracking the total profit investors secure daily through transactions — has witnessed a dramatic spike. This metric is calculated by comparing a token's previous selling price to its current spot price, with sales at a higher current price contributing to realized profit. Since late September, daily realized profit volume for XRP has surged from $65 million to an impressive $220 million, marking a 240% increase. Interestingly, this substantial profit-taking spree has unfolded while XRP's price experienced a drawdown from its previous high of $3.09. This divergence is notable because, in past market cycles, profit realization typically aligned with price rallies. Glassnode commented on this, suggesting that the current trend "underscores distribution into weakness, not strength," indicating sustained selling pressure during price declines.
Market Recovery and ETF Prospects
Despite the significant profit-taking, XRP's price has managed to stage a recovery, currently trading around $2.56, marking a 13% increase over the last 24 hours. This rebound suggests a sudden influx of demand that has successfully absorbed the selling pressure. A key factor potentially fueling this recovery is the looming anticipation of Spot Exchange-Traded Funds (ETFs) for XRP. Following the approval of Bitcoin and Ethereum Spot ETFs by the US Securities and Exchange Commission (SEC) last year, filings for XRP-related Spot ETFs are currently under review. Such investment vehicles would allow investors to gain exposure to XRP without direct ownership, potentially unlocking significant institutional interest and liquidity for the asset.
