XRP News Today: XRP Faces $2.20 Resistance as Profit-Taking Surges 300%

XRP, the cryptocurrency associated with Ripple, has been under significant pressure as profit-taking activities intensify. Despite a strong performance in the current crypto cycle, with gains exceeding 300% since October 2024, the token has faced resistance near the $2.20 mark. This resistance is primarily due to early investors locking in profits, which has created a distribution pressure that is stalling XRP's momentum.

On-chain data from Glassnode indicates that XRP wallets have realized $68.8 million in profits this month, the highest amount in over a year. This surge in profit-taking, particularly from long-term holders who accumulated XRP below $0.60, has weighed down the token's ability to breach the $2.20 level. Despite bullish sentiment and a strong market structure, XRP has repeatedly failed to overcome this resistance.

Ripple’s expansion into tokenized assets and recent regulatory clarity in the U.S. have provided some support for XRP. However, these positive developments have not been sufficient to push the token past its current resistance level. The persistent supply overhang from early holders continues to limit XRP's upside potential, even as its fundamentals improve.

The broader altcoin market is also facing challenges. The 1-year cumulative buy/sell volume difference for altcoins, excluding Bitcoin and Ethereum, is now at a negative $36 billion, down sharply from its brief positive flip in December 2024. This indicates that altcoin investors are cautious, and only a few tokens, including XRP, SOL, and RWA-themed tokens, show strength. Independent analyst Burak Kesmeci notes that "altcoin investors are MIA," suggesting a lack of significant investment activity in the altcoin sector.

Despite the broader market weakness, XRP continues to outperform its peers and remains a standout in the large-cap category. However, without a resurgence in risk appetite or a return of capital to sectors like Layer 1s, DeFi, or gaming, a full-blown altseason looks unlikely heading into summer. XRP's momentum is currently hinged on breaking above the $2.20 level and overcoming the heavy hands of early profit-takers.

Meanwhile, the XRP Ledger is experiencing a surge in activity. Wallets holding at least 1 million XRP have reached an all-time high of 2,708, with each of these wallets now worth over $2.25 million. This is the first time in XRP's 12-year history that this many large holders have been recorded. Additionally, daily active addresses on the network have jumped to over 295,000 in just one week, marking a 637% increase from the usual 35,000 to 40,000. This sudden wave of user activity and renewed interest in the ecosystem signals growing hopes for a market recovery.