- XRP’s profit-taking volume surged 240% from $65M to $220M per day despite a 25% price drop.
- Distribution phase suggests seasoned holders are cashing out amid weakening price momentum.
- High selling volume raises risks of short-term volatility, with a cautious outlook for recovery.
The XRP market is witnessing a significant shift, according to recent data from Glassnode. The latest chart, titled “XRP: Realized Profit by Profit Margin (14d Moving Average),” reveals a startling trend: despite a 25% price drop from $3.09 to $2.30 since late September, profit realization volume has surged by approximately 240%, rising from $65 million to $220 million per day (7-day SMA).
This divergence marks a departure from previous cycles, where profit-taking typically coincided with price rallies. Instead, the current wave suggests a distribution phase, with seasoned holders cashing out into a weakening market.
Distribution Phase Indicates Weakening Bullish Conviction
This behavior, highlighted in Glassnode’s analysis, indicates that long-term XRP investors are unloading their holdings, adding downward pressure on the price. The chart, spanning November 2024 to November 2025, shows multiple spikes in realized profits, with the latest peak aligning with the recent decline.
This contrasts with earlier surges in 2025, where profit-taking followed price increases, underscoring a shift in market psychology. The data points to a lack of bullish conviction, as sellers dominate amid declining prices.
Monitoring Accumulation and Volume for Recovery Signs
For investors, this trend serves as a cautionary signal. The absence of accumulation and the presence of high selling volume suggest potential volatility ahead. While XRP’s utility in cross-border payments and its ecosystem growth remain strong fundamentals, the current on-chain metrics hint at a short-term bearish outlook.
Traders are advised to monitor for signs of accumulation and increased buying volume before anticipating a recovery. As the market recalibrates, the coming weeks will be critical in determining whether this distribution phase transitions into a new accumulation cycle or prolongs the downward trend.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
