XRP investors have recently locked in hundreds of millions in profits, as long-term holders across major cryptocurrencies like Bitcoin, Ethereum, and Solana took advantage of recent price surges to cash out. The profit-taking trend has sparked notable price volatility and shifted overall market sentiment.

Massive Profit Realization Sends Shockwaves Through Crypto Markets

Recent on-chain analysis reveals that over $2.8 billion in profits was realized by investors who held digital assets for more than a month. This collective sell-off spanned assets like Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Solana (SOL), and Tron (TRX).

The data was shared by analytics firm Glassnode in an update on August 20, underscoring how experienced holders capitalized on elevated valuations after a prolonged bullish run. Notably, Bitcoin led the charge with investors realizing $1.5 billion in gains on July 18—marking the most significant BTC profit-taking since December 2024.

Ethereum followed with $575 million of realized profits on August 16, representing ETH’s highest profit spike in this cycle. Solana recorded over $105 million in profits on August 17, while XRP investors locked in $375 million on July 24. These figures indicate that long-term holders have strategically offloaded assets at peak moments, creating downward pressure in prices.

XRP Falls Below Key Level Following Investor Sell-Off

The wave of profit arrests coincided with increased market instability. As previously reported, Bitcoin dipped below $113,000 for the first time in several weeks, dragging numerous tokens along with it. Ethereum slumped under $4,200, and XRP breached the $3.00 support level. Cardano (ADA) suffered one of the worst declines, falling 8% to $0.85, while more than $70 billion in overall crypto market capitalization was wiped out overnight.

Glassnode emphasized that the sale of assets immediately following major rallies is common among experienced traders. This round of exits seems to fit that trend, with ripple effects seen across all corners of the market.

Blockchain market analysts track XRP, BTC, ETH and SOL sell-offs during profit-taking.

Shifting Sentiment Signals Market Reset

The timing of this coordinated selling spree has also coincided with notable changes in crowd behavior. According to sentiment data shared by Santiment, social media discussions around Bitcoin have turned sharply negative, reaching their lowest levels since June. Historically, such extreme levels of pessimism have been indicative of local market bottoms—often attracting contrarian buyers seeking discounted entries. Read more.

Meanwhile, the divide between investor timelines has become more pronounced. A recent CryptoQuant analysis showed that short-term Bitcoin holders—those who held BTC for under five months—have now begun realizing losses for the first time since January. According to the report, these actions may either purge weak hands from the market or catalyze deeper corrections if mass liquidations continue. View full report.

Mixed Momentum Across Altcoins

Not all metrics are pointing downward, however. Tron (TRX) presents an exception with short-term holders currently experiencing over 30% gains, according to current data. Despite substantial long-term profit realization earlier in the month, momentum around TRX remains relatively optimistic. Such resilience may offer a counterbalance to broader bearish trends unfolding across high-cap altcoins. Explore the trend.

Related: XRP Price: $12M Max Pain for Bears

As XRP and other major digital assets adjust to post-rally conditions, traders will be eyeing macroeconomic signals and sentiment indicators for clues on whether the market has entered a temporary pullback or the early stages of a more prolonged correction.