NAIROBI (CoinChapter.com)—Ripple (XRP) has skyrocketed to $2.37, marking a massive 418% surge over the past 30 days. While the rally has caught the attention of investors, it also raises questions about how sustainable these gains are. Whales have poured billions into the token, while profit-taking is ramping up.
XRP Surges Amid Whale Accumulation and Active Addresses
Ripple token is riding a historic rally, gaining 26% in 24 hours and soaring to levels last seen in 2018. Whales, holding between 1M-10M tokens, played a crucial role, buying 679.1 million XRP worth $1.8 billion, according to Santiment data. This surge pushed the number of active XRP wallets past 5.5 million, an all-time high since the token’s launch.
XRP Supply Distribution Weekly Active Addresses & Holders. Source: Santiment
The weekly active addresses jumped by 200% to 307K in November, underscoring renewed investor interest. This comes amid speculation that Ripple’s rumored stablecoin approval by New York regulators is fueling the rally. Additionally, WisdomTree’s recent filing for an XRP ETF has added another layer of bullish sentiment.
Profit-Taking and Supply Expansion Raise Concerns
While the Ripple token’s price gains have been meteoric, profit-taking has surged alongside it. Investors booked $2.7 billion in profits last weekend, the highest amount in eight years. Ripple also unlocked 500 million XRP tokens, worth $1.35 billion, as part of its escrow system.
XRP Network Realized Profit Hits Record Levels. Credit: Santiment
Moreover, the Mean Coin Age metric, which tracks accumulation and distribution trends, shows consistent selling activity over the past three weeks. This highlights that both short- and long-term holders are capitalizing on XRP’s price spike.
XRP’s Mean Coin Age signals sustained holding behavior. Source: Santiment
On the exchange front, XRP’s U.S. premium ranged from 3% to 13% in November on Coinbase, indicating robust local demand. However, with profit-taking and an expanded supply, analysts believe the risks for new buyers have increased.
Ripple coin’s rally to $2.37 has spotlighted its potential but also its risks. Whale activity and heightened interest have driven the surge, but selling pressure and a potential increase in supply could stall gains.
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