XRP supply has reached historic high risk levels, raising concerns about its potential impact. ๐ฅ๐ฅ
Data shows that XRPโs profit supply is currently at levels that have historically placed the cryptocurrencyโs price in a high-risk zone.
Santiment, an on-chain analytics company, has identified Bitcoin, Ethereum, and XRP as assets in a high-risk zone compared to their historical averages. The โPercentage of Total Supply in Profitโ metric tracks the percentage of cryptocurrency in circulation with unrealized profit. It uses each coin's transaction history to determine its last transfer price, which reveals its profit-loss status. If the previous price is lower than the current spot value, the coin is considered a profit. Total Supply Percentage in Profit calculates the percentage of supply they represent.
Currently, 81% of XRP's supply is in the green, while Bitcoin and Ethereum generate 83% and 84% profit. Investors holding their coins at a profit are more likely to participate in the sell-off, leading to a sell-off. Santiment defines three zones for the Profit Offer Percentage indicator, with XRP, BTC, and ETH currently hovering between 55% and 75% Profit Offer since 2018. ETF and positive news, but it's a great signal. for continued long-term growth, there would be a shift below 75% of their profit supply.
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