XRP Supply in Profit Drops to Levels Last Seen When Price Was $0.53

Specifically, at the $2 price last December, the percentage supply in profit for XRP surged above 95%, signifying that nearly all investors saw gains on their holdings. Notably, most of the investors bought when prices traded between $0.5 and $0.6 for years before the November 2024 rally.

However, with XRP currently trading at $2.15, about 7.5% higher, the supply in profit now stands at just 58.5%. Glassnode confirmed that the last time XRP saw this level of supply in profit, the XRP price changed hands around the $0.5 level.

Reason Behind the Divergence

Notably, this divergence is due to the influx of new investors, who jumped on the XRP rally that began after the November 2024 breakout. Specifically, with XRP breaking above the $2 price, investors who had neglected the token for years eventually entered the market at higher prices, expecting further price appreciation.

When XRP traded between the $2.7 and $3.6 price region from mid-July to early-October, the percent of supply in profit stood at a range of 85% to 100%. However, with prices now tumbling to the lower end of the $2 mark, the supply in profit has collapsed to the current 58.5% range.

According to Glassnode, the current state represents a fragile market dominated by late buyers. The firm’s latest disclosure comes at a time when investors have begun ramping up their profit-taking trades. Specifically, Glassnode revealed that profit-taking volume had risen from $65 million a day to $220 million a day since late September.