XRP Profit-Taking Volume Hits $375M, Highest Since December 2024 Rally

Data shows XRP profit-taking volume by long-term holders recently reached a new yearly peak, mirroring the distribution trend from December 2024. XRP ended last month, July, on a bearish note after reaching a new peak of $3.66 earlier in the month. While the recovery that emerged this month, August, pushed XRP above $3 for an extended period, recent data from Glassnode has identified what contributed to the late-July crash. XRP Profit-Taking Volume Hits $375M Notably, Glassnode took to X today to reveal the extent of profit-taking trades by investors of the top five assets over the past month. According to the market analytics platform, the recent market downturn, which has resulted in the global crypto market cap losing over $200 billion over the past three days, was due to these profit-taking trades. For XRP, Glassnode revealed that the heightened profit-taking volume did not emerge recently, as is the case with other assets, but took place last month. Specifically, XRP profit-taking volume skyrocketed to $375 million on July 24. While investors holding for 1 month to 1 year contributed massively, the largest volumes came from those holding for at least 2 years.

This large distribution event occurred amid the panic that ensued as a result of the broader market crash on July 23, which saw XRP collapse by a massive 10.34% in a single day. This marked its highest intraday drop in three months. Following this slump, investors panicked and began taking profit, leading to the $375 million XRP profit-taking volume the next day, on July 24. According to Glassnode, this marked XRP's largest profit-taking volume this year, and mirrored the extent of the distribution observed by the market during the December 2024 rally. For context, XRP soared nearly 290% from November to December 2024, retesting the $3 mark and leading to a similar heightened profit-taking event. Meanwhile, after the latest July 24 volume, XRP held strong for a few days before going into a death spiral that led to a 13.2% collapse by Aug. 2. XRP has since recovered from this drop, but Glassnode's recent analysis suggests the most recent crash below $3 could also be a direct product of such profit-taking trades. XRP Address Profitability Remains High Interestingly, a previous report from The Crypto Basic confirmed that Glassnode data also revealed a rise in XRP address profitability above 90%. Specifically, as XRP held above $3, addresses seeing gains on their holdings surged to 94%.  Citing this data, market commentator Winny suggested at the time that this could lead to heightened XRP profit-taking volume. This trend has since materialized, contributing to the recent crash below $3 for XRP. However, XRP has shown more resilience than in previous instances of profit-taking trades due to multiple bullish factors. Meanwhile, despite the recent pullback, trader Xaif Crypto confirmed today that 93% of XRP addresses are still in profit, citing Santiment data. Notably, since July, address profitability has averaged 90%. While this is a positive sign, it also shows that there could still be increased XRP profit-taking volumes going forward.