Context: After weeks of bullish momentum, XRP—Ripple's native cryptocurrency—is showing signs of slowing down. Despite outperforming most altcoins, its upward potential faces pressure from significant profit-taking by investors.
XRP Price Struggles Amid Capital Outflows
As of this writing, XRP trades at $2.17, up 0.5% over 24 hours. While modest, this gain positions it among the top-performing large-cap altcoins this week. However, analysts warn of underlying risks:
- Glassnode data reveals $68.8 million daily profit-taking (7-day moving average) by early investors, signaling distribution.
- These investors now hold 300%+ unrealized gains since November 2024's rally.
"XRP trading above $2 represents a 3x increase from its pre-rally baseline price."
— Glassnode
The Altcoin Winter Deepens
The broader altcoin market faces headwinds:
- $36 billion net sell-side pressure (CryptoQuant data).
- Weak investor confidence persists despite Bitcoin's bull run.
- Active XRP addresses (20,000/day) and transaction volume (1M daily payments) remain strong, indicating utility.
ETF Optimism vs. Regulatory Delays
Key Catalysts for XRP:
- Canadian XRP ETFs: Launched June 18 by 3iQ, Purpose, and Evolve.
Pending SEC Decisions: U.S. approvals for XRP ETFs face October deadlines.
- Polymarket odds: 89% approval by December 2025, but only 13% expect it before July 31.
FAQs: XRP's Critical Questions
Q: Will profit-taking crash XRP's price?
A: Not necessarily—network activity and ETF hype may counterbalance sell pressure.
Q: How do XRP ETFs impact its price?
A: Institutional inflows could drive demand, but delays may cause short-term volatility.
Q: Is the altcoin winter ending soon?
A: Market cycles vary; monitor Bitcoin dominance and regulatory developments.
Outlook: Short-Term Caution, Long-Term Potential
XRP's trajectory hinges on:
- SEC ETF decisions (October deadlines).
- Market sentiment shifts away from altcoin winter conditions.
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Bottom Line: While profit-taking creates near-term resistance, XRP's fundamentals and ETF prospects keep its bullish narrative alive.