XRP declined nearly 10% over the past week to trade around $3.13, underperforming Bitcoin’s 2.25% and Ethereum’s 0.50% declines during the same period. The selloff coincides with over 93% of XRP supply showing profit according to Glassnode data, indicating elevated profit-taking pressure among holders.
Profit-Taking Pressure Intensifies
The high percentage of profitable XRP holders exceeds Ethereum’s 84.7% profitable supply, suggesting XRP faces more intense selling pressure from investors realizing gains. When such a large portion of supply shows profit, markets typically experience increased selling as holders take profits or rotate into other assets.
The profit-taking dynamic became apparent as XRP approached its recent high near $3.60, with the profitable holder percentage reaching levels typically associated with market tops.
Whale Movement Adds Selling Pressure
Ripple co-founder Chris Larsen moved approximately $175 million worth of XRP to multiple addresses starting July 17, with roughly $140 million transferred to exchanges. The timing coincided with XRP nearing its all-time high around $3.66, prompting market speculation about potential large-scale selling.
Crypto sleuth zackXBT, detailed the transaction as a comment to a random X post showing XRP downfall and captioning it “Uber Drivers in Pain.”
The whale movement amplified existing selling pressure as traders interpreted the transfers as preparation for significant token sales.
Short-Term Holders Exit
Analysis shows short-term holders who purchased XRP between $2.30-$2.80 over the past 1-3 months were sitting on 20-30% profits before the recent correction. As prices declined, many of these investors appeared to panic sell, contributing additional downward pressure.
The cascading effect of profit-taking from both long-term profitable holders and recent buyers created the conditions for XRP’s underperformance relative to other major cryptocurrencies.
XRP may find support if it returns to the realized price range of $2.30-$2.80, representing cost basis levels for recent accumulation. However, a sustained breakout above $3.60 would likely require significant buying pressure to overcome continued profit-taking resistance.
The combination of whale selling activity and elevated profit-taking suggests continued near-term pressure on XRP price action until supply-demand dynamics rebalance at lower price levels.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk.
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