Key takeout:
XRP (XRP) is one of the worst top cryptocurrencies in the past seven days, falling 13.50% lower, in contrast to Bitcoin (BTC) 2.25% and Ether (ETH) 0.50% lower over the same period.
Ripple Link tokens, which fell by about 10% over the past seven days on Wednesday, outperform highly volatile memokines like Dogecoin (Doge) and Fartcoin (Fartcoin), plummeting to around 20% and 35% over the past week.
Ripple co-founders have moved more than $140 million on XRP
One major downside trigger is that Ripple co-founder Chris Larsen reportedly moved $175 million worth of XRP to four addresses, of which $140 million became crypto exchanges.
The transfer began on July 17th and coincided with XRP peaking over $3.60 before falls over 10-14%.
Timing suggests that most traders view Larsen’s big XRP transfer as a signal that he may be selling at a higher price, undermining his trust and confidence in the bullish outlook for cryptocurrency, and urges others to sell.
Over 90% of XRP supply benefits
Another reason XRP has dropped sharply than most top cryptocurrencies is that supply has recently turned into profits, with most of its 90%.
According to GlassNode data, after the price reached $3.60, the percentage of XRP supply in profits rose to 93.24%.
In comparison, Ethereum’s profit supply rate is located at around 84.70%, but this is still under the red “overheat” zone, as shown below.
Historically, spikes above the 90% threshold are consistent with the top price. Therefore, the increased number of profitable holders is more likely to reserve profits or turn capital into assets with a better basis.
XRP drifts towards tentative realised prices
Recent revisions to XRP appear to reflect a pattern in which prices return to short-term realised price levels.
As of Tuesday, the one-week to three-month cohort had fallen from its peak of $3.13 to $3.66, with realised price ranges between $2.30 and $2.80 in the one-week to three-month cohort.
In other words, according to realised price data, many short-term XRP holders who purchased within the past week to three months (purchased within the past week to three months) have been injected into the market at a price of between $2.30 and $2.80.
This cohort sat on a profit of 20-30% before XRP peaked at $3.66.
Related: XRP Open Interest Sheds $2.4 billion: Is the price crash next?
When prices drop, many of these traders are panicking, especially as the market retreated towards a cost base, rushing to lock in profits or minimize losses.
