TLDR

XRP profit-taking volume spiked to $375M in late July 2025 after a market correction.

Long-term XRP holders contributed most to the $375M profit-taking surge.

Despite recent profit-taking, 93% of XRP addresses remain profitable.

Analysts speculate that XRP’s sub-$3 price might be part of a larger market manipulation strategy.

XRP price faced considerable pressure last month, culminating in a profit-taking volume surge that reached $375 million on July 24. This marked a significant uptick in sell-offs, with many investors looking to capitalize on the token’s recent gains before the market downturn took hold. According to data from Glassnode, the spike in profit-taking volume mirrored a pattern observed during the December 2024 rally, where similar distribution behavior was seen.

The catalyst for the dramatic profit-taking event was a market crash on July 23, 2025, which saw XRP drop by over 10% in a single day. This sharp decline prompted a wave of sell-offs, contributing to the $375 million in transactions the following day. While the event coincided with a broader market correction, XRP’s long-term holders, especially those with two or more years of holdings, made the most significant contributions to the profit-taking surge.

XRP Market Dynamics and Profit-Taking Behavior

XRP’s profit-taking surge is a key indicator of market behavior when assets reach new peaks. In this case, the spike to $3.66 earlier in July triggered a sell-off as many long-term holders capitalized on the gains.

Glassnode’s data highlights that this behavior is not unusual for assets after substantial rallies, with previous years’ similar events such as the December 2024 rally being a noteworthy reference point.

The sell-offs saw a substantial portion of the XRP held by addresses with a 1-2 year holding period, but the largest movements came from holders with stakes held for over two years. This group of investors appears to have been more inclined to exit at the price peak, contributing heavily to the liquidity influx.

XRP Price Recovery and Current Outlook

Following the massive sell-off, XRP briefly dipped below $3, which caused further concern among investors. However, the asset has shown resilience despite the broader market slump. XRP’s recovery above the $3 level in August signaled that the market is still responding positively to the token, albeit with ongoing volatility.

Interestingly, even after the profit-taking surge, XRP remains in a strong position with 93% of its addresses still holding profitable positions. This figure, confirmed by data from Santiment, shows that the majority of XRP holders are still in profit, suggesting that there is significant room for further growth, provided the market stabilizes.

Market commentators like Xaif Crypto have pointed to this as a promising sign of continued upward momentum despite the price fluctuations.

Concerns Over Market Manipulation and Market Sentiment

The recent dip below $3, despite significant address profitability, has raised concerns about potential market manipulation. XRP advocates, such as Alex Cobb, have dismissed the sub-$3 price level as part of a strategy to shake out weaker hands from the market. Cobb referred to the current price action as a “psyop” designed to cause panic among retail holders, suggesting that institutional players might be looking to acquire XRP at a lower price.

Cobb’s optimism about XRP’s potential to rebound, even reaching $3.60 by the end of August, is shared by many in the XRP community.

He continues to emphasize that XRP is not just a typical cryptocurrency, but a revolutionary asset that will power the global financial system. His bullish outlook, combined with the overall strong address profitability, indicates that the current market downturn could be short-lived, with the potential for significant gains if market conditions improve.

The post XRP Profit-Taking Volume Hits $375M Marking Highest of 2025 appeared first on CoinCentral.

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Filed under: News - @ August 21, 2025 9:28 am