XRP Early Holders Cash Out as Token Tests Key Resistance Levels
XRP has experienced a significant rally, trading above $2, more than three times its pre-rally base from October 2024. Early retail holders are now cashing out, leading to increased profit-taking.
- Investors who bought below 60 cents are realizing gains of over 300%.
- The 7-day simple moving average of realized profits reached $68.8 million, the highest in over a year, indicating distribution pressure.
- XRP struggled to break above $2.20 recently due to this profit-taking despite positive market sentiment.
While regulatory clarity in the U.S. and Ripple's advancements in tokenized assets support a positive long-term outlook, current price action reflects supply overhang from long-term holders.
- The net investor flow for altcoins is negative $36 billion, indicating a sharp decline since December 2024.
- The overall altcoin market remains bearish, with limited strength outside of specific tokens like XRP and SOL.
- Future prospects for an "altseason" depend on renewed risk appetite and capital flow into Layer 1s, DeFi, and gaming sectors.
