XRP Rally Sparks Profit-Taking Amid Ripple Labs Investment in Bitwise XRP ETF
XRP investors had an exciting week last week, with the cryptocurrency reaching a three-year high and long-term holders cashing in over $1.5 billion in profits. This surge in profits is the highest since April 2021, showing the positive impact of the recent rally.
It’s common for investors to take profits after a significant rally, and this doesn’t necessarily mean a change in the overall sentiment towards a token. The Market Value to Realized Value (MVRV) ratio hit 217% on Tuesday, indicating that the current market valuation of XRP is much higher than its average purchase price. This could suggest a potential overvaluation in the short term, possibly leading to a market correction.
Several factors have contributed to the recent rise in XRP prices, including hitting a high of $1.60 last week before stabilizing around $1.30. Despite this dip, the token is still up 31% over the past week and has more than doubled in value in just two weeks. Positive catalysts such as regulatory issues being resolved for Ripple Labs, the introduction of money market funds on the XRP Ledger, and a bullish price analysis have all played a part in this price surge.
In other news, Ripple has announced plans to invest in the Bitwise Physical XRP ETP, which was previously known as the ETC Group Physical XRP. This move has already boosted XRP prices by 10%, and the European XRP ETP will now trade under the ticker GXRP on Germany’s Deutsche Börse XETRA.
Ripple Labs CEO, Brad Garlinghouse, mentioned that there has been a significant increase in global demand for exposure to the crypto asset class in 2024, driven by a growing interest in crypto-backed investment products. With clearer regulatory environments in the U.S., the trend is expected to accelerate, leading to more demand for crypto ETPs like the Bitwise Physical XRP ETP.
Overall, the cryptocurrency market is experiencing exciting growth and developments, and XRP investors are reaping the benefits of this ongoing positive momentum.
