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XRP Early Buyers Accelerate Profit-Taking as Regulatory Wins Bolster XRP Ecosystem

Early accumulators are cashing out into strength as the token tests key resistance levels just below its 2021 peak.

Updated Jun 20, 2025, 12:43 p.m. Published Jun 20, 2025, 6:18 a.m.
Profit gauge (Shutterstock)
Profit gauge (Shutterstock)

What to know:

  • XRP is trading above $2, marking a more than 300% gain for early investors, leading to increased profit-taking.
  • On-chain data shows realized profits from XRP wallets reached $68.8 million, indicating distribution pressure as the token tests resistance levels.
  • Despite positive regulatory developments and Ripple's infrastructure expansion, XRP faces a supply overhang from long-term holders, affecting its ability to break above $2.20.

XRP has staged one of the strongest rallies among crypto majors this cycle, but early retail holders are heading for the exit under the surface.

Now trading above $2 — more than thrice its pre-rally base from October 2024 — XRP has become one of the best-performing large-cap tokens over the past 8 months. Investors who bought below 60 cents are sitting on gains upward of 300%, prompting a sharp pickup in profit-taking.

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According to on-chain data from Glassnode, the 7-day simple moving average (SMA) of realized profits from XRP wallets hit $68.8 million earlier this month, the highest in over a year. That’s a clear sign of distribution pressure, with early accumulators cashing out into strength as the token tests key resistance levels just below its 2021 peak.

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That profit-taking pressure may help explain XRP’s failure to break above $2.20 in recent sessions, despite multiple bullish headlines and technical tailwinds.

Read more: XRP Drops 5% as High-Volume Selling Pressure Dominates Market

While the broader setup remains positive, supported by regulatory clarity in the U.S. and Ripple’s growing push into tokenized asset infrastructure, the near-term price action reflects a supply overhang from long-term holders.

A recent CryptoQuant analysis showed that the 1-year cumulative buy/sell quote volume difference for altcoins (excluding BTC and ETH) — a proxy for net investor flows — currently stands at negative $36 billion. That’s a sharp reversal from December 2024, when the metric briefly flipped positive, marking a local top for altcoins.

(CryptoQuant)
(CryptoQuant)

Since then, it’s been a one-way bleed, with “altcoin investors MIA,” CryptoQuant independent analyst Burak Kesmeci said in a Thursday post.

Despite pockets of strength in XRP, SOL, and a few narrative tokens tied to real-world assets (RWAs), the broader altcoin ecosystem remains stuck in a bear market, he noted.

Unless risk appetite returns or capital flows back into Layer 1s, DeFi, and gaming, hopes of an “altseason” may continue to fade into the summer.

Read more: XRP Hits 12-Year Milestone With Over 2,700 Whales, Holding Over 1M XRP, Onchain Data Show

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XRP Faces Downside Risk as Social Sentiment Turns Wildly Negative

(Midjourney/Modified by CoinDesk)

The turn in crowd mood comes after a two-month slide of roughly 31%, leaving the token vulnerable to further downside if risk appetite weakens across majors.

What to know:

  • XRP's price approached the $2 mark as social sentiment around the token turned sharply negative, according to Santiment data.
  • The token has experienced a 31% decline over two months, making it vulnerable to further losses if market risk appetite weakens.
  • Santiment's sentiment model indicates XRP is in a 'fear zone,' where negative commentary significantly outweighs positive talk, potentially influencing market positioning.