XRP has been riding high on a wave of bullish momentum, trading above $2 for the first time since its rally began in October 2024. It has more than tripled from its pre-rally level, making it one of the top-performing large-cap cryptocurrencies over the past eight months. However, the tide seems to be turning as early retail investors, lured by significant gains, are cashing in their profits. Recent data from Glassnode highlights that the 7-day simple moving average of realized profits from XRP wallets soared to $68.8 million in early June, the highest in over a year, signaling a potential shift in market dynamics.
Profit-Taking and Market Dynamics
The surge in profit-taking might be the reason XRP has struggled to conquer the $2.20 mark, despite a slew of positive news and technical strengths. The cryptocurrency is experiencing distribution pressure as early accumulators lock in gains, with the token flirting with key resistance levels just shy of its 2021 peak. According to Burak Kesmeci, a CryptoQuant analyst, this trend is not isolated to XRP. “Altcoin investors remain missing in action,” he observed, noting that the market has seen a stark reversal since December 2024, when the cumulative buy/sell volume difference for altcoins excluding Bitcoin and Ethereum turned negative by $36 billion. This mirrors the broader market dynamics discussed in Altcoin Summer Speculation Grows as Solana Outperforms Bitcoin.
The bearish sentiment in the altcoin market has persisted, despite pockets of resilience in XRP, Solana (SOL), and a few tokens linked to real-world assets (RWAs). Kesmeci suggests that unless there’s a resurgence in risk appetite or capital flows back into Layer 1 solutions, decentralized finance (DeFi), and gaming sectors, the much-anticipated “altseason” could remain elusive well into the summer.
Regulatory Wins and Ecosystem Growth
Amidst this backdrop, XRP’s ecosystem continues to gain strength from regulatory clarity in the United States, coupled with Ripple’s aggressive foray into tokenized asset infrastructure. These developments have been a boon for the XRP community, providing a degree of confidence and stability in an otherwise volatile market. Yet, the near-term price action seems to be overshadowed by the supply overhang from long-term holders eager to capitalize on their investments.
XRP’s recent struggles to sustain its upward trajectory are reflective of broader market challenges. While the cryptocurrency has made significant strides, the broader altcoin market is still grappling with headwinds. As Kesmeci points out, the lack of fresh capital inflows into the altcoin space has been a significant hurdle, stalling momentum and dampening investor sentiment. This is further explored in our analysis of Altcoins With Massive Gains and New ATHs as Bitcoin Flirts With $110K.
Looking Ahead
As we move through June 2025, the question remains whether XRP can break through its current resistance levels and maintain its bullish momentum. The interplay between profit-taking and new capital inflows will likely dictate the token’s direction in the coming weeks. While regulatory clarity and ecosystem growth offer a solid foundation, the broader altcoin market’s struggles could weigh heavily on XRP’s prospects.
The cryptocurrency world is watching closely, with many analysts speculating on what the near future holds for XRP and its peers. Will the early buyers continue to cash out, or will new investors step in to propel the token to new heights? The answers will unfold as the market continues to navigate the complexities of 2025’s ever-evolving landscape.
Source
This article is based on: XRP Early Buyers Accelerate Profit-Taking as Regulatory Wins Bolster XRP Ecosystem
Further Reading
Deepen your understanding with these related articles:
- Ethereum Governance Tokens Spike as SEC Backs ‘Innovation Exemption’ for DeFi Projects
- Aave, Uniswap, Sky Tokens Surge Over 20% as SEC Roundtable Spurs DeFi Optimism
- ATOM Finds Support at $4.50 as Ethereum Whales Signal Potential Altcoin Season
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
