XRP Under Siege: Profit-Taking Surge & Technical Breakdown Threaten Rally

XRP bulls hit pause as traders cash in gains and charts flash warning signs. The digital asset—once a darling of the cross-border payment crowd—now battles headwinds that could derail its recent momentum.

Profit-taking runs rampant

Whales and retail alike are dumping bags after XRP's latest push higher. The sell pressure's turning what should be healthy consolidation into something uglier—liquidity hunters smell blood in the water.

Technical cracks emerge

Key support levels that held during last month's rally now crumble like a stale cookie. MACD crosses bearish while RSI noses below 50—classic 'take the money and run' signals for swing traders.

Market watchers eye SEC shadows

Never far from drama, XRP faces renewed scrutiny as regulators circle. Some whisper this pullback's just an excuse for institutions to reload before the next legal clarity pump—because nothing fuels crypto rallies like bureaucratic uncertainty.

Closing thought: If history's any guide, today's panic sells will become tomorrow's FOMO buys. After all, what's a crypto cycle without a few leveraged traders getting rekt along the way?

In Brief

• XRP ranks among top performers this cycle as early investors sit on over 300% in gains.
• Profit-taking has begun, with $68.8M in daily XRP sales reported since early June.
• Open interest in XRP futures fell 25%, echoing past patterns that preceded price drops.
• Price trades below 50-day and 100-day SMAs, showing weak momentum and buyer caution.

XRP Triples in Value as Early Investors See Over 300% Gains

Data from Glassnode shows XRP has risen over threefold from its base value prior to its sharp ascent in November 2024. 

Those who entered the market early are now seeing returns exceeding 300%, marking a significant upswing in portfolio value. However, with these strong gains in hand, a new trend is starting to emerge. This shift comes after a recent 50% surge in on-chain activity.

Long-Term Holders Begin Exiting

Since the start of June, many of the earliest investors have begun offloading their holdings, signalling a broad shift towards profit-taking. 

According to Glassnode, these sales have averaged $68.8 million worth of XRP each day, based on a rolling seven-day average. This steady wave of selling signals a distribution phase, as long-time holders cash out and add pressure on price.

XRP has struggled to break beyond a clear resistance zone at $2.30. It briefly moved above that level, but the momentum faded, and the price slipped back into the range by early June.

This weakness aligns with increased selling, suggesting profit-taking is preventing the price from moving higher.

This key price range is now acting as a resistance level, one that the market has attempted but failed to breach with consistency. Without fresh momentum or renewed buying, XRP remains capped below this ceiling.

Derivatives Data Suggests Waning Confidence

The derivatives market is also showing weakness. XRP futures open interest dropped from around $5.3 billion on 12 May to $3.97 billion by 20 June—a 25% decline. 

Similar drops have led to sharp price corrections in the past, including one earlier in 2025 when XRP plunged after a surge in open interest faded.

In January, XRP climbed to a multi-year high of $3.40. But following a steep drop in open interest, the token saw a dramatic fall to $1.61 by 7 April, representing a 53% decline.

Technical indicators further reflect the current fragility. XRP is trading beneath both its 50-day and 100-day simple moving averages (SMA), which stand around $2.27 and $2.23, respectively. The token’s inability to trade above these dynamic averages reflects a lack of strength in the current trend, suggesting buyers are hesitant or exhausted.

One level now drawing particular attention is $2.04. A break below this support point could open the way to deeper losses.

Analysts Eye XRP’s Breakout or Retest Zones

Against this backdrop, technical analyst CasiTrades believes XRP is nearing a major turning point. After weeks of narrowing price movement, the token appears ready for a significant breakout—or one last dip to gather strength.

She also highlighted key metrics to watch:

• $2.25 remains key resistance; failure to break may lead to a retest of lower support zones.
• Price areas like $2.01, $1.90, and $1.55 may help rebuild momentum, not signal a bearish trend.
• CasiTrades views any pullback as a reset phase that attracts fresh buyer interest.
• Pullbacks could attract buyers and reset the market rather than weaken long-term demand.
• Global tensions may add fuel to volatility, aligning with market timing and structure.

Recent selling doesn’t necessarily point to a full reversal for XRP, but it does highlight growing pressure on the price. With the easy gains likely behind us, the market has entered a more fragile phase where each move carries greater weight. A broader crypto rebound may still offer XRP some relief, but near-term momentum remains uncertain.

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