What to Know:
- XRP’s profitability has dipped to levels last seen in late 2024, with only 58.5% of its circulating supply currently in profit.
- Derivatives activity shows cautious sentiment, with XRP futures open interest declining from nearly $10 billion to around $3.8 billion this year.
- Despite short-term weakness, XRP’s fundamentals remain strong, supported by Ripple’s legal resolutions, strategic acquisitions, and growing institutional interest, including the launch of several XRP ETFs.
XRP is facing renewed headwinds as market conditions impact profitability metrics, bringing them back to levels seen in late 2024. Data indicates that a significant portion of XRP’s circulating supply is currently held at a loss, reflecting challenges in maintaining upward momentum. However, underlying factors suggest potential for long-term resilience.
XRP’s open interest in futures markets has decreased, signaling reduced speculative demand and cautious trading behavior. This contraction reflects a broader trend of traders pulling back from directional bets, contributing to XRP’s price stagnation. This suggests that the post-election surge has lost steam, with XRP trading sideways.
Profit-taking by long-term holders is also influencing XRP’s price action, as those who acquired XRP at lower prices are now realizing gains. This profit-realization activity has seen a substantial increase, adding downward pressure on the token’s price. Despite these challenges, strong fundamentals continue to support XRP’s outlook.
Ripple’s resolution with the SEC, along with strategic acquisitions and partnerships, enhances the company’s ecosystem and global presence. The launch of several spot XRP ETFs, including significant inflows into Canary Capital’s XRPC ETF, demonstrates rising institutional interest. Social media discussions and retail sales patterns also indicate potential for a future price rebound.
While XRP faces short-term challenges, its underlying fundamentals and growing institutional interest provide a basis for long-term optimism. Investors should monitor market dynamics and regulatory developments to assess XRP’s future trajectory.
Source: Original article
