Ripple Holders Lock in Short-Term Profits

On a recent Friday, Ripple's (XRP) price neared the $0.55 threshold, prompting investors to lock in short-term profits. After a month of relative stagnation, XRP seems poised for a significant breakthrough. However, after briefly touching the $0.55 mark, Ripple holders were quick to secure their profits, causing a slight dip below $0.53. The Daily On-chain Transaction Volume in Profit chart revealed that on October 1st, a whopping 3.48 billion coins were sold at a profit. According to analytics platform Santiment, such a level of profit-taking hasn't been observed since February 2021.

While profit-taking for XRP reached record levels, the whale cohort might have different plans. As of September 27th, wallets holding between 1 million to 10 million XRP contained 3.73 billion coins. Interestingly, by September 29th, this number had risen to 3.79 billion. This indicates that large investors accumulated 60 million tokens in just three days. At the current market price of $0.52, the Ripple acquired by these whales is valued at approximately $31.2 million. Such active purchases seemingly helped stave off a major correction. If retail investors follow the lead of these large XRP holders, the asset's price might once again embark on an upward trajectory.

Despite the frenzy associated with profit-taking, XRP's price is likely to stabilize above $0.51. The Market Value to Realized Value (MVRV) ratio, which assesses the net financial position of current Ripple holders, also supports this prediction. Current charts show that investors who purchased XRP in the last 30 days have an unrealized profit of around 3%. Historical data suggests they will aim to push this value to at least 10% and will start closing positions once the asset's price reaches the $0.55 mark again. However, in the event of a significant downturn, most will break even or lock in minimal losses, with the next significant support level being the $0.49 area.