The share of XRP circulating supply in profit rose to 57.172 percent, the highest level in nine months.

Decrypt reported on Tuesday that as XRP held around $1.40, a large portion of tokens bought during the August to September rebound moved back into profit.

The figure refers to the share of circulating XRP that last moved at a price below the current level. Based on data compiled by on-chain data firm Glassnode, 57.172 percent of XRP supply was last moved at levels below the current price. At the time of writing, XRP traded around $1.51. Applying a circulating supply of 68.4 billion tokens, about 39.12 billion XRP are in profit.

The recent move aligns with a recovery since a mid-August low. XRP slid to $0.98 in mid-August before rebounding, and August ended around $1.379, up 30 percent for the month. The uptrend continued into September. Selling pressure emerged toward month-end, but September still finished up about 8 percent. A pullback followed in October, but gains over the prior two months pushed a large part of circulating supply back into profit.

The share of supply in profit was just 37.27 percent as recently as Aug. 16. At the time, XRP traded at $0.99 and the amount in profit was about 25.5 billion tokens. By contrast, supply in loss was close to 43.0 billion tokens. The amount in loss has since fallen to about 29.2 billion tokens, accounting for 42.8 percent of total supply.

The move back to the 57 percent range is the highest level since January. XRP traded around $2 at the time. On Jan. 5, XRP rose to $2.4 and the share of supply in profit jumped to 77.25 percent. When the price fell to $2.06 on Jan. 17, the share slipped to 60 percent, and it dropped to 56.27 percent when the price fell further to $1.99 the next day.

As the downtrend continued, the indicator fell below 50 percent in late January. For the next three months, the share of XRP supply in profit stayed under 50 percent. That meant more supply was at a loss as the price remained below $1.50 for an extended period.

Signs of a rebound appeared once in May. XRP rose to $1.47 and the share of supply in profit moved back above 50 percent. The move did not last, and the share retreated to a low in the 37 percent range again in August. As prices recovered through August and September, the share rose back above 50 percent and climbed to 57.172 percent.

The market is also watching how the share of supply in profit affects investor sentiment, not just the price itself. A rising share in profit can increase selling pressure. If the price falls below key support levels, the amount in loss could rise again. In this situation, whether XRP can keep holding around $1.40 remains a key variable for the short-term trend.