XRP’s supply profitability has tumbled to the lowest point since last November, but that’s not always a bad sign.
In spite of posting solid 92.9% gains in a yearly timeframe, Ripple coin’s (XRP) percentage of supply in profit has turned to a yearly low, resembling early November, 2024 levels. Back then, XRP was priced at just $0.53, having 58.5% of the OG altcoin supply in profit.
Top or Bottom Signal For XRP’s Price?
Right now, around 26.5 billion XRP coins are sitting at a loss, even though XRP’s price is trading roughly four times bigger than the previous instance. At $2.15, profit taking is still hefty across both retail & wholesale crypto investors, with the Profit Realization Volume (7-day SMA) picking up pace by 240% in a month, signaling an instance of bearish divergence.
According to these research-based conclusions from Glassnode, the structurally fragile crypto market dominated by late buyers is a crystal clear trait of a local top. On the other hand, this played out well for Ripple coin (XRP) last time, as the early 2025 bull rally witnessed an XRP squeeze followed by a breakthrough beyond $3.
Supply Squeeze Tested By Market Fright
Notably, the superb XRP rally to the all-time peak of $3.65 last Summer was driven by multiple legal victories. With the SEC vs. Ripple case settlement & crypto-friendly acts approved by the Senate, XRP’s price had factored in this with multiple rallies – and traders expect the same to occur with the ultimate launch of Ripple-based ETFs.
If history repeats itself, the debut of Franklin Templeton & Canary Capital’s Ripple (XRP) ETFs could garner fresh buying power, as seen on $250M inflows on debut day. However, this is overshadowed by fearful broader market sentiment. Right now, the Crypto Fear & Greed Index stands at a drastic figure of 11, meaning extreme fear has risen considerably.
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