XRP tests the key resistance level of $2.2, early buyers accelerate profits

According to Gate News bot and CoinDesk, XRP has initiated one of the strongest rebounds among mainstream Crypto Assets in this cycle, but early retail investors are quietly exiting.

XRP is currently trading at over $2, more than three times the price level before the rebound in October 2024, and has become one of the best-performing large-cap coins in the past 8 months. Investors who bought below 60 cents have made profits exceeding 300%, which has led to a significant increase in profit-taking.

According to on-chain data from Glassnode, the 7-day simple moving average (SMA) of XRP wallets that have realized profits reached $68.8 million at the beginning of this month, marking the highest level in over a year. This clearly indicates distribution pressure, as XRP tests a key resistance level slightly below the 2021 peak, with early accumulated funds cashing out.

This profit-taking pressure may help explain why XRP has failed to break through $2.20 in recent trading days, despite multiple bullish news and technical tailwinds.

Despite the overall market sentiment remaining optimistic, thanks to the clarity of U.S. regulation and XRP's continuous advancement into tokenized asset infrastructure, recent price movements reflect an oversupply from long-term holders.

A recent analysis by CryptoQuant shows that the cumulative buy/sell quote spread of altcoins (excluding BTC and ETH) over the past year is currently negative 36 billion USD. This is in stark contrast to December 2024, when the indicator briefly turned positive, marking a local peak in altcoin prices.