XRP Supply In Profit Drops To Lowest Level Since July 2024

The cryptocurrency market's recent decline has taken a toll on $XRP holders, with a substantial portion of the circulating supply now trading in the red. Blockchain analytics firm Glassnode has revealed that the significant downward pressure on $XRP has resulted in a mere 43.4% of the total supply being held at a profit, with the current price hovering around $1.33. This marks the lowest level of profitability for the network since July 2024, a stark contrast to the 2024-2025 cycle when the metric consistently ranged between 90% and 100%.

The drastic decline in $XRP's price has been accompanied by a notable decrease in institutional interest. As of April 2, the combined net assets of US-based $XRP ETFs stood at $917 million, a notable drop from the $1 billion mark just a few days prior. A massive exodus of capital was observed between March 5 and March 12, with March 6 and 9 being particularly affected, recording net outflows of $16.62 million and $18.11 million, respectively.

However, there are indications that the brutal outflows may have subsided, at least for the time being. The final week of March saw a significant reduction in outflows, with most days experiencing minimal or no net change, punctuated by minor drawdowns, such as the $1.32 million outflow on April 1. Furthermore, a potential "short squeeze" may be on the horizon for $XRP, fueled by a bearish setup in the derivatives market, as reported by U.Today. The question remains whether the bullish forces will be able to reverse the current trend and restore momentum to the $XRP market.