XRP: A Top Performer Amid Profit-Taking and Market Uncertainty

Published on: June 21, 2025 ▪ Reading Time: 5 minutes ▪ By: Ifeoluwa O.

Ripple’s digital currency, XRP, has emerged as one of the leading cryptocurrencies in terms of profitability this cycle, providing substantial returns for its investors. Its significant price increase in late 2024 solidified its status, even as the legal conflict with the SEC approaches resolution.

Overview of Current Market Trends

Profitability in the Current Cycle

XRP has impressively tripled its value since its low point prior to a rapid rise in November 2024. Early backers are experiencing returns surpassing 300%, reflecting a remarkable improvement in portfolio values. However, a notable trend of profit-taking has begun, particularly following a substantial uptick in on-chain activities.

Shift Towards Profit-Taking

Since early June, many long-term investors have started to liquidate their holdings. This trend indicates a shift towards profit realization, with sales averaging approximately $68.8 million per day based on a seven-day rolling average. This persistent trend of selling suggests a distribution phase, intensifying pressure on prices as seasoned investors cash out.

XRP has struggled to maintain its position above a significant resistance level of $2.30. After briefly surpassing this threshold, the price quickly returned to lower levels by early June, indicating that current selling activities are constraining upward movement.

Deteriorating Market Confidence

Decline in Derivatives Activity

The derivatives market for XRP is also reflecting signs of weakness. Open interest in XRP futures has fallen from $5.3 billion on May 12 to approximately $3.97 billion by June 20—a 25% drop. Historical patterns suggest that such declines in open interest often precede notable price corrections.

In January, XRP reached a multi-year peak at $3.40; however, a subsequent decline in open interest preceded a dramatic price drop to $1.61 by April 7, representing a 53% decrease.

Technical Indicators Reflect Weak Momentum

Current technical analysis reveals that XRP is trading below both its 50-day and 100-day simple moving averages (SMA), which hover around $2.27 and $2.23, respectively. This inability to trade above significant moving averages denotes a lack of bullish momentum, indicating that buyers may be hesitant or running low on support.

Particular attention is now being paid to the $2.04 support level. If XRP falls below this key threshold, it could lead to more significant price declines.

Potential Breakout Scenarios

Analysts Speculate on Future Movement

Technical analysts, including insights from CasiTrades, suggest that XRP may be approaching a critical inflection point. Following a phase of limited price movement, the asset appears poised for either a significant breakout or a recession to gather additional strength.

Key observations include:

• The resistance level at $2.25 is crucial; failure to surpass it may necessitate a retest of lower support levels.
• Price points around $2.01, $1.90, and $1.55 may contribute to regaining momentum rather than signalling a downturn.
• CasiTrades interprets any potential price pullbacks as opportunities for renewal of buyer interest, rather than as bearish indicators.
• Global economic factors could amplify market volatility, influencing timing and structural responses.

Conclusion: Navigating Through Uncertainty

The recent selling pressure does not definitively indicate a full market reversal for XRP, but it does underline increasing pricing challenges. With the substantial gains likely behind us, the market now finds itself in a more delicate phase, where each movement becomes increasingly critical. Although a broader cryptocurrency market rebound may still provide some support for XRP, immediate momentum appears to be tenuous.

Disclaimer: The perspectives outlined in this article represent solely those of the author and should not be construed as financial advice. Always conduct thorough research before making any investment decisions.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.