What You Need to Know:
- XRP is trading above $2, representing a gain of over 300% for early supporters, resulting in increased profit realization.
- On-chain analytics indicate that realized profits from XRP wallets hit $68.8 million, reflecting distribution pressure as the token approaches its resistance levels.
- Despite positive regulatory changes and the expansion of Ripple’s infrastructure, XRP faces challenges due to a supply overhang from long-term holders, complicating its ability to surpass $2.20.
XRP has emerged with one of the most impressive rallies among major cryptocurrencies, yet early retail investors are starting to sell while the price remains high. Currently priced above $2—more than three times its before-rally value from October 2024—XRP is recognized as a standout performer in the large-cap market over the past eight months, generating significant gains for investors who purchased below 60 cents; this has led to a notable increase in profit-taking.
According to logging from Glassnode, the seven-day simple moving average of realized profits from XRP wallets reached $68.8 million, marking a peak not seen in over a year. This trend signifies that early adopters are cashing in their gains as the token approaches critical resistance levels.
Despite resilient inflation trends favoring XRP, there are challenges in breaking through the $2.20 resistance, even with supportive regulatory news and technical factors. A recent examination from CryptoQuant highlighted that the cumulative buy/sell volume for altcoins (excluding BTC and ETH) currently sits at a negative $36 billion, indicating a sharp reversal from December 2024, which may halt upward momentum.
While there is positive sentiment around XRP, SOL, and a small number of narrative tokens linked to real-world assets, the general altcoin environment remains constrained within a bearish market. The situation suggests that unless investor confidence improves or capital flows back into established sectors such as Layer 1s, decentralized finance, and gaming, hopes for a market turnaround may wane as summer approaches.
