Early XRP investors are beginning to take profits as the token approaches critical resistance levels just below its 2021 peak, capping off one of the most impressive rallies among large-cap cryptos this cycle.

Now trading above $2.09, XRP has more than tripled from its October 2024 base near $0.60. That surge has positioned it as one of the top performers in the past eight months, but under the surface, early retail holders are steadily exiting their positions.

According to Glassnode, the 7-day simple moving average (SMA) of realized profits from XRP wallets climbed to $68.8 million earlier this month — the highest level in over a year. The spike points to mounting distribution pressure as long-term holders cash out into strength, even as XRP attempts to break through resistance levels near $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 shared in a post on June 19.

Despite a favorable backdrop that includes regulatory clarity in the U.S. and Ripple’s expanding efforts in tokenized asset infrastructure, XRP has failed to hold above $2.20 in recent sessions. Analysts point to the wave of profit-taking as a key factor behind the short-term resistance.

Altcoin Pressure Remains

Recent research from CryptoQuant highlights broader weakness across altcoins. The 1-year cumulative buy/sell volume difference — a measure of net investor flows excluding BTC and ETH — is now negative $36 billion, marking a stark reversal from the brief uptick 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 XRP, SOL, and a few RWA-linked tokens show isolated strength, most of the altcoin market remains in a downtrend. Without a clear revival in risk appetite or capital rotation back into Layer 1s, DeFi, and gaming, hopes for an “altseason” appear to be fading as summer approaches.