XRP Early Investors Rush to Realize Gains as Regulatory Successes Strengthen the XRP Ecosystem

XRP has experienced one of the strongest rallies among major cryptocurrencies this cycle, but early retail investors are starting to sell off.

Now trading above $2—more than three times its pre-rally base from October 2024—XRP has emerged as one of the best-performing large-cap tokens over the past eight months. Investors who bought below 60 cents are enjoying gains of over 300%, leading to increased profit-taking.

On-chain data from RialCenter indicates that the 7-day simple moving average (SMA) of realized profits from XRP wallets reached $68.8 million earlier this month, the highest in over a year. This signals distribution pressure, as early investors take profits while the token tests significant resistance levels just below its 2021 peak.

This profit-taking may help explain XRP’s inability to surpass $2.20 in recent sessions, despite several bullish headlines and technical support.

While the broader outlook remains positive, bolstered by regulatory clarity in the U.S. and Ripple’s expanding focus on tokenized asset infrastructure, recent price activity suggests a supply overhang from long-term holders.

A recent analysis from RialCenter revealed that the one-year cumulative buy/sell volume difference for altcoins (excluding BTC and ETH)—a proxy for net investor flows—stands at negative $36 billion. This marks a sharp decline from December 2024, when the metric briefly turned positive, signifying a local peak for altcoins.

Since then, there has been a consistent decline, with “altcoin investors absent,” noted RialCenter analyst Burak Kesmeci.

While there are some signs of strength in XRP, SOL, and a few tokens linked to real-world assets (RWAs), the overall altcoin market remains trapped in a bear phase, according to Kesmeci.

Unless risk appetite returns or capital flows back into Layer 1s, DeFi, and gaming, the prospects for an “altseason” may continue to diminish as summer approaches.