XRP has been one of the top-performing major cryptocurrencies in recent months, but its latest price movement shows signs of slowing down. The token has gained over 300% since late 2024, now trading above $2, but many early investors are starting to take profits, adding pressure just as XRP approaches a key resistance level at $2.20.

Profit-Taking Begins as XRP Tests Resistance

After months of steady gains, XRP recently touched $2.18 before facing strong resistance just below its 2021 peak of $2.20. The move comes as investors who bought the token at significantly lower prices begin to cash in. According to on-chain data from Glassnode, the 7-day average of realized profits from XRP wallets recently hit $68.8 million — the highest in over a year. This signals that a wave of profit-taking is underway.

The data highlights how many early buyers, especially those who entered the market below $0.60 during late 2024, are locking in gains as the price climbs. These sellers are creating a supply overhang, making it harder for XRP to move higher in the short term.

Regulatory Wins and Ecosystem Growth Still Support Bullish Outlook

Despite this wave of selling, XRP’s long-term outlook remains strong. The recent rally has been driven by a combination of favorable regulatory developments in the United States and Ripple’s expanding presence in global payments and tokenized asset infrastructure.

Ripple has been actively working with financial institutions and governments to build out use cases for the XRP Ledger. These efforts, combined with increasing clarity around crypto regulations in key markets like the U.S. and Europe, have helped fuel interest in XRP.

Market optimism around Ripple’s future is also linked to its central bank digital currency (CBDC) platform, which is already being tested by several countries. Although XRP itself is not directly tied to all these platforms, growing trust in Ripple’s technology often translates to increased interest in the token.

XRP Struggles Amid Weak Altcoin Market

While XRP has shown strength, it isn’t immune to broader market conditions. The altcoin market, in general, has been under pressure, with overall investor appetite remaining low. According to a recent CryptoQuant report, the cumulative net investor flow across altcoins (excluding Bitcoin and Ethereum) is down $36 billion compared to late 2024.

CryptoQuant’s analyst Burak Kesmeci pointed out that altcoin investors remain mostly inactive, contributing to the current price stagnation. This lack of capital inflow across the sector adds further challenges for XRP in its attempt to break above key levels.

Even though XRP has weathered the downturn better than most, its current struggle at the $2.20 resistance level is a reminder that the token’s rise is still subject to broader market dynamics and investor sentiment.

What’s Next for XRP?

XRP is currently trading around $2.18, just below the critical resistance zone. A successful breakout above $2.20 could open the door for a move toward $2.50 or even $3.00 in the coming weeks. However, if selling pressure continues, XRP may revisit support near $2.00 or even lower.

Traders will be watching closely for key developments that could impact XRP’s price direction. These include:

• Ripple reveal new institutional partnerships.

• Broader market recovery in altcoins and Layer 1 ecosystems.

• Additional regulatory clarity that favors XRP’s utility in cross-border payments.

Conclusion

XRP’s recent rally has rewarded long-term holders, but the surge is now facing resistance as early buyers take profits. While the token remains one of the stronger performers in the crypto market, further gains may be limited in the short term unless fresh demand emerges.

Still, with Ripple expanding its infrastructure and regulatory momentum building, XRP could find renewed strength in the months ahead. Investors should keep a close eye on the $2.20 resistance level and monitor on-chain signals to gauge whether the current pause is temporary or a sign of a deeper pullback.