XRP, a token for the Ripple ecosystem, is now trading well above $2 for the first time since the rally began at the end of 2024.
However, despite outperforming most altcoin markets, its upward potential seems limited due to investor profit-taking.
XRP Price Stagnation...Investors Cashing Out
XRP is currently trading at $2.17, rising more than 0.5% in the past 24 hours. Despite the slight increase, CoinGecko data shows that the Ripple token has shown the most notable rise among the largest altcoins by market capitalization on Friday.
Glassnode analysts emphasize that XRP is holding above $2, noting that investors who accumulated XRP during the previous cycle are now seeing over 300% in profits.
"XRP is trading above $2, more than 3 times higher than its base price before the November 2024 surge." – Glassnode statement.
However, the same group of investors might be limiting XRP's further upside potential. The question is how.
According to Glassnode data, they began realizing profits at a rate of $68.8 million per day in early June (7D-SMA). This indicates a wave of distribution among early holders.
While this wave of selling has not yet reversed XRP's upward trend, it has injected uncertainty, especially as the broader altcoin market is under pressure.
Altcoin Winter Continues...Investors Net Sell $36 Billion
Indeed, crypto traders and investors are witnessing an altcoin winter, with a $36 billion gap favoring sellers, indicating weak investor confidence. CryptoQuant reported this week that "Altcoin investors are MIA (missing in action)".
"The 1-year cumulative buy/sell volume estimate difference for altcoins (excluding Bitcoin and Ethereum)" is currently at -$36 billion... Despite Bitcoin enjoying an uptrend, altcoins are still behaving as if it's winter." – CryptoQuant statement.
Nevertheless, XRP continues to show strength in key network metrics. Daily active accounts have increased to around 20,000, double the average seen throughout 2024.
Similarly, XRP processes nearly 1 million payments daily, demonstrating strong utility even amid cautious investor sentiment.
Behind XRP's rally is new optimism about an XRP ETF. Canadian asset managers 3iQ, Purpose, and Evolve launched XRP ETFs this week, marking one of the first moves by major financial institutions into the Ripple ecosystem.
These funds began trading on Canadian exchanges on Wednesday, reflecting regulatory openness in North America.
Meanwhile, in the US, several XRP ETF applications are awaiting SEC decision. Bloomberg analyst James Seyffart mentioned that the SEC must decide on XRP ETF applications by October, leaving room for speculation in the second half of the year.
XRP not being actioned (at least not publicly that i can tell) Final deadline for XRP ETF also in October
— James Seyffart (@JSeyff) June 17, 2025
On the prediction market platform Polymarket, the probability of a US XRP ETF approval by the end of 2025 is currently 89%. However, only 13% believe it will be approved before July 31, with traders expecting delays or a final decision by year-end.
ETF momentum and increased utility are helping XRP outperform other altcoins. However, the ongoing wave of profit-taking could limit further short-term gains.
The path of altcoins ultimately depends on the SEC's ETF decision and broader market conditions that could help escape the current altcoin winter.
