Ripple's XRP sees decline as realized profits reach record levels
- Ripple invested another $25 million in pro-crypto Fairshake super PAC.
- The elevated profit levels of XRP’s total supply could see investors realize profits rapidly, causing a potential price decline.
- XRP could see a new all-time high at $3.57 if bulls can stage a rally above the 2021 high of $1.96.
Ripple's XRP is down 6% on Tuesday following record profit-taking among investors as its percentage of total supply in profit reached very high levels in the past week. This follows Ripple Labs donating another $25 million to the pro-crypto Fairshake super PAC.
Ripple donates to Fairshake super PAC, realized XRP profits reach record levels
Ripple co-founder and CEO, Brad Garlinghouse, announced that the company contributed another $25 million to the crypto-focused Fairshake super political action committee (PAC). This marks Ripple Labs third donation to the Fairshake super PAC over the past year.
Fairshake proved instrumental in helping support pro-crypto candidates to gain victory in the recent 2024 US elections. "Electing pro-crypto, pro-growth and pro-innovation candidates is a no-brainer, and to continue that momentum, Ripple is contributing another $25M to Fairshake," wrote Garlinghouse in an X post on Tuesday.
Fairshake is the most successful multi-candidate, bipartisan Super PAC in American history.
— Brad Garlinghouse (@bgarlinghouse) November 26, 2024
Electing pro-crypto, pro-growth and pro-innovation candidates is a no-brainer, and to continue that momentum, Ripple is contributing another $25M to Fairshake. Onwards!
Ripple chief legal officer, Stuart Alderoty, noted that the company was among the first supporters of Fairshake before it became successful.
"When Fairshake first started, Ripple committed to being a top tier supporter; before anyone knew what impact it might have," Alderoty wrote in a Tuesday X post. "Innovation is here to stay and we will remain a strong force in DC for years to come."
Ripple's donation follows record profit-taking from investors after XRP's price growth in the past week. According to Santiment data, XRP investors realized over $1.5 billion in profits in the past week — the highest since April 2021.
 [21.32.22, 26 Nov, 2024]-638682532513916679.png)
XRP Network Realized Profits/Loss | Santiment
The increased profit-taking could be from long-term holders who have held onto their tokens all through XRP's downturn since 2022. Additionally, the percentage of XRP supply in profit crossed 99% over the weekend and its Market Value to Realized Value (MVRV) ratio — which measures the average profit or loss of all XRP holders — reached 217%.
 [21.32.13, 26 Nov, 2024]-638682533083868566.png)
XRP %Total Supply in Profit & MVRV | Santiment
With almost the total supply seeing profit at elevated levels, investors could realize profits rapidly if the market sees a slight downturn or consolidates for a while.
XRP could rally to a new all-time high if bulls beat recent selling pressure
XRP is testing the $1.35 support level after sustaining a 6% decline in the past 24 hours. The decline sparked $20.75 million in XRP's 24 hours futures liquidations with liquidated long and short positions accounting for $15.07 million and $5.68 million, respectively, per Coinglass data.
XRP has been struggling to reclaim its 2021 high of $1.96 as selling pressure has risen slightly following its recent two-week 100% rally.
XRP/USDT weekly chart
If XRP bulls can stage a rally above $1.96, it will validate a rounded bottom pattern, meaning the remittance-based token could rally to set a new all-time high at $3.57.
The Relative Strength Index (RSI) is in the overbought region, indicating XRP's price could see a correction.
A weekly candlestick close below $0.938 will invalidate the bullish thesis.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
