As XRP Scores Regulatory Successes, Early Holders Move Swiftly to Realize Profits

XRP’s early investors are taking profits as the cryptocurrency hovers just below major resistance levels near its 2021 highs, pausing one of the strongest rallies among large-cap digital assets this cycle.

Currently priced above $2.09, XRP has risen over threefold since its lows around $0.60 in October 2024. Despite this impressive performance over the past eight months, many early buyers appear eager to lock in gains.

Glassnode data shows the 7-day simple moving average (SMA) of realized profits from XRP wallets spiking to $68.8 million earlier this month—the highest figure in over a year. The data suggests rising selling pressure as long-term holders cash out while prices test the key resistance zone around $2.20.

“XRP is trading above $2, more than 3x higher than its base price before the sharp rally in November 2024. Investors who accumulated earlier are sitting on over 300% gains,” Glassnode reported on June 19.

Although XRP benefits from a favorable environment—including clearer U.S. regulations and Ripple’s ongoing work in tokenized asset infrastructure—the token has struggled to break and hold above $2.20 in recent sessions. Analysts point to persistent profit-taking as a significant headwind limiting further price advances.

Altcoins Struggle to Gain Traction

Beyond XRP, the broader altcoin market continues to show weakness. Research from CryptoQuant reveals that the 1-year cumulative buy/sell volume difference—a metric tracking net flows into cryptocurrencies excluding BTC and ETH—has fallen to a negative $36 billion, erasing the modest rebound seen in December 2024.

“Since then, it’s been a steady bleed,” wrote CryptoQuant analyst Burak Kesmeci, noting that “altcoin investors are missing in action.”

While tokens like XRP, Solana (SOL), and certain real-world asset (RWA) projects have shown pockets of strength, most altcoins remain stuck in declining trends. Without renewed investor appetite or significant capital flows into areas like Layer 1 networks, DeFi, or gaming, hopes for a broad “altseason” are dimming as summer progresses.