XRP Price Under Pressure as Profit-Taking Increases

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XRP has delivered a stellar performance in the current crypto cycle, soaring past $2 and marking gains of over 300% since October 2024. But beneath the surface, early investors are now locking in profits, creating distribution pressure that’s stalling the token’s momentum just below its 2021 high.

XRP Price Profit-Taking Heats Up Near $2.20

On-chain data from Glassnode reveals that XRP wallets realized $68.8 million in profits this month, the highest in over a year. This signals increased sell pressure, especially from long-term holders who accumulated XRP below $0.60. Despite bullish sentiment and strong market structure, XRP has repeatedly failed to breach the $2.20 level, weighed down by this profit-taking wave.

Regulatory Wins Offer Support, But Overhang Persists

Ripple’s ongoing expansion into tokenized assets and recent regulatory clarity in the U.S. have been positive tailwinds. However, they haven’t been enough to push XRP past resistance. The token faces a persistent supply overhang from early holders, limiting upside potential even as fundamentals improve.

Altcoins Still in the Shadow of Bearish Flows

According to CryptoQuant, the broader altcoin market is still struggling. The 1-year cumulative buy/sell volume difference for altcoins (excluding BTC and ETH) is now at a negative $36 billion, down sharply from its brief positive flip in December 2024. Independent analyst Burak Kesmeci points out that “altcoin investors are MIA,” and only a few names like XRP, SOL, and RWA-themed tokens show strength.

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While XRP continues to outperform its peers and remains a standout in the large-cap category, it hasn’t been immune to broader market weakness. Without a resurgence in risk appetite or a return of capital to Layer 1s, DeFi, or gaming sectors, a full-blown altseason looks unlikely heading into summer. For now, XRP’s momentum hinges on breaking above $2.20 and overcoming the heavy hands of early profit-takers.

Meanwhile, Whales are not Backing Off

However, a new report from Santiment shows that the XRP Ledger is buzzing with activity. Big players, or “whales,” are stepping up in a big way, wallets holding at least 1 million XRP have reached an all-time high of 2,708. That means each of these wallets is now worth over $2.25 million, and it’s the first time in XRP’s 12-year history that this many large holders have been recorded.

On top of that, daily active addresses on the network have exploded, jumping to over 295,000 in just one week. That’s a massive 637% increase from the usual 35,000 to 40,000, signaling a sudden wave of user activity and renewed interest in the ecosystem as hopes for a market recovery grow.

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