What to Know:
- XRP’s profitability metrics have declined, with a significant portion of the circulating supply now at a realized loss.
- Derivatives activity indicates cautious sentiment, with a notable decrease in XRP futures open interest.
- Despite short-term weakness, strong fundamentals, including Ripple’s legal resolution, strategic acquisitions, and new XRP ETFs, support long-term positioning.
XRP is facing renewed pressure as market conditions impact its profitability, bringing metrics to levels last seen in late 2024. Currently, only 58.5% of XRP’s circulating supply is in profit, reflecting a challenging period for the token. However, underlying fundamentals and growing institutional interest suggest potential for long-term recovery.
XRP’s price growth has stalled since its post-election spike, trading sideways around $2.10, leading to disappointment among traders anticipating further gains. Data indicates that long-term holders who acquired XRP below $1 are now actively taking profits, increasing selling pressure. This profit-taking activity has surged by 240% since September, reaching nearly $220 million per day.
Despite these challenges, Ripple’s resolution with the SEC and strategic moves are strengthening its ecosystem. Recent developments, including a $500 million raise and acquisitions of Palisade and Hidden Roads, are expanding Ripple’s product suite and global presence. Market analysts view these actions as supportive of XRP’s long-term prospects, reinforcing the ecosystem that relies on the token.
Institutional interest in XRP is growing, evidenced by the launch of several spot XRP ETFs in November 2025. Firms like Franklin Templeton, Bitwise, 21Shares, and CoinShares have introduced XRP ETFs, with Canary Capital’s XRPC ETF already attracting nearly $278 million in early inflows. Increased ETF activity signals growing confidence among institutional investors in the long-term potential of XRP.
While XRP faces short-term headwinds, its strong fundamentals and increasing institutional interest provide a foundation for future growth. Investors should monitor market trends, regulatory developments, and Ripple’s strategic initiatives to assess the long-term potential of XRP in the evolving digital asset landscape.
Source: Original article
