Recent market data shows massive profit-taking of over $4 billion in Ripple's XRP token amid an extraordinary price surge and increased whale accumulation. The cryptocurrency has experienced a remarkable 418% price increase over the past 30 days, reaching $2.37.
Large-scale investors, known as whales, have shown strong interest in XRP, with holders of 1-10 million tokens purchasing an additional 679.1 million XRP tokens valued at approximately $1.8 billion. This surge in whale activity has contributed to pushing the number of active XRP wallets to an all-time high of 5.5 million.
The weekly active addresses saw a dramatic 200% increase to 307,000 in November, indicating growing investor participation. Market observers attribute this renewed interest partly to speculation around Ripple's potential stablecoin approval from New York regulators and WisdomTree's recent XRP ETF filing.
However, the rapid price appreciation has led to substantial profit-taking. Investors cashed out $2.7 billion in profits over a single weekend, marking the highest profit-taking activity in eight years. Adding to market supply, Ripple released 500 million XRP tokens worth $1.35 billion through its escrow system.
Analysis of the Mean Coin Age metric reveals consistent selling activity over three weeks, with both short-term and long-term holders capitalizing on the price increase. While U.S. demand remains strong, with Coinbase premiums ranging from 3% to 13% in November, market analysts warn of increased risks for new investors due to mounting selling pressure and expanded token supply.
The combination of profit-taking and supply expansion has raised questions about the sustainability of XRP's recent gains, despite the strong institutional interest and broader market optimism.