XRP Market Analysis: Significant Decline amid Whale Activity and Profit-taking
Key Takeaways
- Over 93% of XRP supply in profit, resulting in a profiting-taking spike.
- Whale activity and theft headlines have amplified XRP’s downside pressure.
XRP Performance Worsens Compared to Major Cryptocurrencies
XRP has been one of the worst-performing top cryptocurrencies in the past seven days, dropping as low as 13.50%.
Down around 10% over the past seven days, the Ripple-linked token is faring better than high-volatility memecoins like Dogecoin (DOGE) and Fartcoin (FARTCOIN), which have plunged roughly 20% and 35% over the same period.
Ripple Co-founder’s Large XRP Transfer
One major downside trigger was Ripple co-founder Chris Larsen reportedly moving nearly $175 million worth of XRP to four addresses, with $140 million ending up on exchanges.
The transfers began on July 17 and coincided with XRP peaking above $3.60, before tumbled by 10-14%.
The timing of these transfers suggests that many traders interpreted them as a signal of potential selling at higher prices, undermining confidence in XRP’s bullish prospects and prompting others to sell.
Over 93% of XRP Supply in Profit
Historically favorable price is now below cost basis for many holders.
According to Glassnode data, the percentage of XRP supply in profit surged to 93.24% after the price reached $3.60.
In comparison, Ethereum’s percent supply in profits sits at around 84.70%, which is below the “overheated” threshold.
Historically, when XRP supply in profit spikes above 90%, it coincides with market tops. As more holders realize gains, they are likely to book profits or rotate capital to assets with stronger fundamentals.
XRP Drifts Toward Interim Realized Prices
XRP’s recent correction appears to reflect prices drifting back toward short-term realized price levels.
As of Tuesday, the 1-week to 3-month cohort shows a realized price range between $2.30 and $2.80, while XRP trades near $3.13, down from a $3.66 peak.
Many short-term holders who entered at $2.30-$2.80 were sitting on 20-30% profits before XRP peaked. As the price began to fall, many likely panicked and rushed to lock in gains or minimize losses when the market retraced toward their cost basis.