XRP is flashing signs of growing investor confidence as over 80% of its total circulating supply is now in profit. With the token currently trading around $2.20, most holders are sitting on gains, reflecting a strong base of investors who are holding rather than panic-selling.
According to Glassnode, XRP price surged above $2, over three times its price before the sharp rally began in November 2024. Early investors who accumulated before the breakout are now sitting on gains of more than 300%. In early June, early holders began realizing profits at an average pace of $68.8 million per day (7-day SMA). This suggests a clear wave of distribution by long-term holders, likely locking in gains after the massive rally.
Adding to the upbeat outlook, XRP’s funding rate has turned positive, sitting at 0.0053%. This means traders in futures markets are mostly betting on XRP to go higher, and are willing to pay fees to maintain long positions. A positive funding rate typically signals bullish sentiment, with more long traders outweighing short sellers, currently by more than 3 to 1.
Interestingly, on-chain activity has cooled, with daily active addresses dropping and volume staying below $1 billion. However, this isn’t necessarily a negative aspect. Fewer active addresses can indicate long-term holders are choosing to sit tight rather than sell, often a sign of belief in higher prices ahead. This kind of quiet phase can sometimes be the calm before a big move.
XRP’s open interest in the futures market has also surged to $2.8 billion, reflecting a large number of open contracts. When combined with the strong long/short ratio of 3.10, it’s clear that the majority of traders are betting on price increases. Over 75% of all open positions are long trades.
Compared to Ethereum, where only 61% of the supply is in profit, XRP is in a stronger technical position. This profit gap could make a big difference for investors trying to decide where to allocate capital next.
Across short timeframes (5-minute, 30-minute, and 1-hour), XRP’s long/short ratio remains above 3.0, suggesting a persistent bullish lean. If momentum continues and external catalysts align, XRP may be poised for a significant price move soon.
Crypto analyst Doctor Profit has called XRP “one of the most beautiful charts right now,” highlighting what he sees as a massive buy setup in the spot market. He remains highly bullish, predicting XRP could hit $4 this year. Having previously called major moves at $0.15, $0.38, and $0.50, he’s doubling down on the asset’s breakout potential, saying he “won’t stop” backing XRP as bigger moves lie ahead.
While strong, a large open interest in long positions and a significant portion of XRP holders in profit suggest potential for profit-taking, though quiet on-chain activity may signal long-term holding.
Choosing between XRP and Ethereum depends on investment goals. XRP excels in fast, low-cost cross-border payments with growing institutional adoption, while Ethereum is a leading platform for DeFi and dApps with smart contract functionality.
While both have potential, XRP’s recent regulatory clarity, institutional adoption focus, and potential for ETFs could lead to significant ROI, with some analysts predicting a move to $4 or higher this year. Ethereum’s ROI relies on its continued dominance in DeFi/dApps and scalability upgrades.
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