• XRP price drops 13% from recent high of $1.63
• Realized profits reach $1.84B, highest since April 2021
• 97% of circulating supply currently in profit

The cryptocurrency XRP has entered a period of increased selling pressure following its climb to $1.63, a peak not seen in three years. The subsequent 13% decline to $1.41 coincides with a significant surge in profit-taking activity, suggesting a potential shift in market dynamics that could lead to further price adjustments.

On-chain analysis reveals an extraordinary spike in realized profits, reaching $1.84 billion over the past seven days—a level not witnessed since April 2021. This metric, which measures aggregate profits based on the last movement of tokens, provides crucial insight into holder behavior during price rallies.

The current surge indicates that many investors are choosing to secure their gains rather than maintain their positions.

A Wave of Profit-Taking Signals XRP Market Shift

Particularly noteworthy is the behavior of long-term holders, traditionally considered the market’s most stable participants. The decline in Ripple’s Mean Dollar Invested Age (MDIA) suggests these veteran investors are actively reducing their positions, contributing to the downward pressure on price.

This movement becomes more understandable when considering that an unprecedented 97% of XRP’s 99 billion circulating supply currently sits in profit.

From a technical perspective, XRP maintains its position above crucial support at $1.33. However, the continuation of profit-taking activity could challenge this level, potentially pushing the price toward $1.28 if support fails.

Alternatively, a revival in buying interest could propel the token back toward its recent high of $1.63, though current market conditions suggest caution.

The high percentage of profitable positions creates a delicate market situation where further profit-taking could trigger cascading selling pressure. Investors should closely monitor support levels and on-chain metrics for signs of stabilization or continued distribution.