Recent on-chain data reveals a significant surge in XRP profit-taking, yet the price has climbed back above $2.50. According to analytics firm Glassnode, XRP’s realized profit has increased by 240% since late September.
Realized profit measures the total daily profit investors lock in through their transactions. It calculates this by tracking each token’s transfer history to determine its last selling price. If that price was lower than the current market price, the sale results in a net profit, with the profit amount being the difference between the two prices. This metric sums up all such profitable sales across the blockchain daily, while its counterpart, realized loss, accounts for transactions where the selling price is below the cost basis.
Glassnode’s chart shows the 14-day moving average of XRP’s realized profit has been rising since late September, indicating heightened profit-taking. During this period, daily profit realization jumped from $65 million to $220 million, a 240% increase, even as XRP’s price fell from $3.09.
Historically, such profit-taking spikes in XRP have occurred during price rallies, but this recent trend is unusual as it coincides with a price decline. Glassnode notes this divergence suggests investors are selling during weakness rather than strength.
Despite the high level of profit-taking, XRP has rebounded in the past day, suggesting new demand has outweighed the selling pressure. This recovery may be linked to anticipation around potential approval of XRP spot ETFs, which would allow investors to gain exposure to XRP without directly holding it, similar to approved Bitcoin and Ethereum ETFs.
Currently, XRP is trading around $2.56, up 13% in the last 24 hours.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about an XRP price surge coupled with a spike in profittaking
Beginner General Questions
1 What does it mean that XRP surged to 256
It means the price of one XRP token increased significantly reaching a value of 256
2 What is profittaking
Profittaking is when people who bought XRP at a lower price sell some or all of their holdings to lock in the gains theyve made from the price increase
3 If the price went up so much why are people selling
Its a natural market reaction After a big price jump many investors decide its a good time to secure their profits which can cause a temporary increase in selling pressure
4 Is a 240 spike in profittaking a bad sign
Not necessarily Its a sign that many people are cashing out their profits which can slow down or temporarily reverse the price surge It doesnt automatically mean the rally is over but it indicates a pause or a breather for the market
5 Should I buy XRP now that its at 256
This is a personal financial decision Be aware that buying after a large surge carries more risk as the price might correct due to the high level of profittaking Never invest more than you can afford to lose
Advanced Market Analysis Questions
6 How can the price be surging if selling pressure is so high
The price can continue to surge if the buying pressure from new investors entering the market is even stronger than the selling pressure from those taking profits Its a constant battle between buyers and sellers
7 What typically causes a sharp price surge like this for XRP
Sharp surges are often driven by a combination of factors such as positive news overall market optimism large institutional purchases or social media hype
8 What is the difference between profittaking and a fullblown selloff
Profittaking Some investors sell to realize gains but many may still hold a portion of their assets believing in further longterm growth Its often a healthy market correction