Traders $XRP are taking profits
On-chain data for Ripple indicates that investors are actively taking profits. This is evidenced by a sharp increase in realized profits: over the last seven days, it reached $1.84 billion. This is the highest figure since April 2021, according to Santiment.
The growth of this indicator suggests that holders are selling the asset at a significant profit — that is, the selling price is higher than the purchase price. Typically, realized profits increase during periods of high market activity.
Long-term holders of XRP took this opportunity to lock in profits. When the token reached a multi-year high, they began to sell. This is evidenced by the data from the MDIA indicator, which tracks the average age of all tokens on the blockchain, weighted by their average purchase price. Over the last week, this indicator has decreased.
When the price of the cryptocurrency rises, and MDIA falls, it indicates that long-term investors are actively selling off the asset. In doing so, they exert strong downward pressure on the Ripple rate and intensify bearish sentiment.
