XRP is showing signs of strength as more than 80% of its total supply is now in profit. This means most XRP tokens in circulation were last moved at a lower price than where it trades today (almost $2.20).
This suggests that most of the wallets are holding profitable positions and have so far avoided panic selling.
The XRP funding rate is also positive, and at present, it stands at 0.0053 percent. This normally means bullishness in the futures market. In a situation where the funding rates are positive, that is usually an indication that traders may anticipate the price moving upwards.
However, the decline in daily active addresses does not necessarily reflect a bearish perspective. In most instances, low address activity implies that long-term holders are not trading their assets but, instead, are waiting until the prices improve.
This quiet behavior on-chain is worth watching, especially as it may precede a new wave of buying or selling depending on external catalysts. On-chain volume within the last day is still under $1 billion, but the high percentage of profitable supply makes it clear that most holders are not underwater.
These factors encourage confidence among investors seeking to buy an asset. A market characterized by a substantial level of profitable owners and positive funding signals short-term healthy positioning.
High open interest and trades dominated by longs signify optimism
The XRP open interest in futures is currently $2.8 billion. This shows that traders continue to place bets on a positive price direction. Combined with the current funding rate, this indicates that a significant number of those bets lean long.
Bitcoin and Ethereum are also seeing shifts in sentiment, but XRP’s current metrics are more tilted toward profit and optimism. Compared to Ethereum, whose supply in profit is only 61%, XRP, with profitable holders exceeding 80%, is in a superior position in the market. Such a gap may be important when investors are making a decision on where to invest funds.
XRP traders are displaying an explicit bullish inclination as portrayed by the longs across multiple time frames. The long/short ratio of XRP in the last 24 hours is 3.10.
It implies that traders are three times more likely to bet on the price increasing rather than decreasing. About 75.6% of the open positions are longs, whereas short positions are 24.3%.
The same trends are also true in the 5-minute, 30-minute, and 1-hour time frames, with the ratio exceeding 3.0 in all cases.
