XRP is experiencing a dynamic period, marked by both impressive gains and significant profit-taking activity. Recently, XRP rebounded strongly after an intraday drop of over 6%, finding support above $2.04 and forming a bullish ascending channel. This recovery suggests renewed momentum, with traders closely monitoring the cryptocurrency's ability to breach the $2.09 resistance line.
XRP's Bullish Signals
Despite the recent volatility, XRP's on-chain and technical metrics remain strong. Analysts are closely watching for a potential breakout if the $2.09 resistance is overcome with sufficient volume. This positive outlook is further supported by institutional interest surrounding a possible spot ETF approval and Ripple's continued expansion in the global payments sector.
Profit-Taking Pressures
However, XRP's rally is also facing headwinds from early investors cashing out. Trading above $2, more than three times its pre-rally base from October 2024, XRP has become one of the best-performing large-cap tokens. Consequently, investors who bought below 60 cents are realizing substantial gains, leading to increased profit-taking.
- According to on-chain data from Glassnode, the 7-day simple moving average (SMA) of realized profits from XRP wallets reached $68.8 million earlier this month, a year-high.
- This profit-taking pressure may explain XRP’s recent struggle to break above $2.20, despite bullish news and technical tailwinds.
Market sentiment remains fragile due to ongoing global economic uncertainties, including trade tensions and policy shifts among major economies. These factors have contributed to volatility across the broader crypto landscape.
While the overall setup for XRP remains positive, supported by regulatory clarity in the U.S. and Ripple's push into tokenized asset infrastructure, investors should monitor the balance between bullish momentum and profit-taking pressures to gauge XRP's future trajectory.