Ripple (XRP)’s lackluster performance has left many investors disappointed. However, data from the analytical platform Santiment shows the asset remains among the top five cryptocurrencies with the highest profitability.
This report comes as XRP has grappled with significant resistance around the $0.5 price level in the past few weeks.
Santiment Data Shows Most Profitable Crypto Assets
XRP has failed to break above $0.5 after slipping off the $0.6 threshold on April 12. However, the asset has maintained $0.5 support, reflecting its resilience amid the struggles. Santiment data proves most of XRP’s circulating supply is trading in profit despite the price stagnation.
Santiment came to this conclusion after assessing XRP’s Supply in Profit data. In context, the Supply in Profit is calculated by comparing a token’s present value to its initial value at creation.
The report reveals that Bitcoin leads the Supply in Profit list, with 98.3% of its supply trading at a profit. Ethereum follows closely with a supply in profit of 95.1%. Next is Chainlink at 86.8%, Dogecoin at 82.2%, and XRP at 78.8%, while Cardano holds a profitability ratio of 53.5%.
Bitcoin probably maintains the number one spot because it is trading close to its all-time high value. Meanwhile, although XRP has underperformed relative to other crypto assets on the list, it still emerges in the fifth. Despite its lackluster performance, the Ripple token holds a profitability ratio of 78.8%.
Why is XRP on the Supply Profitability List?
XRP’s high profitability might be due to the fact that most of its circulating supply was released when its price was very low.
Ripple Labs releases an estimated 200 million XRP tokens each month from escrow, which amounts to around 2.4 billion each year. If the monthly escrow release coincides with a price dip, it could sustain its Supply Profitability.
For instance, 500 million XRP tokens were released from escrow on May 1. This release occurred when XRP traded at $0.50. So, these tokens are currently profitable since XRP has risen to trade above $0.52.
What’s Next?
XRP price has remained in a sideways trend for the last few weeks as traders continue to show indecision. However, XRP has remained above $0.51 since May 20 despite pressure from sellers. The strong support zone at $0.50 has prevented further decline even during general market retracements.
XRP is facing resistance at the $0.52 price level, and rejection at this level will likely force a decline to $0.50. Also, it is trading below the median band of the Donchian Channel (DC), confirming the sideways trend.
This implies that the buyers and sellers are evenly matched in the market, and the price remains relatively stable. The RSI indicator confirms the neutral sentiment with a value of 50.33. However, the RSI is rising hinting at a possible recovery ahead.
Therefore, if the RSI rises to 60, then the buyers have regained control of the market. If the $0.51 support holds, XRP will likely remain in the $0.51-$0.52 price range for the coming days.
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