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Ripple’s XRP token has defied expectations by holding above the crucial $2 mark despite significant profit-taking activity. The token’s impressive resilience in the face of major selling pressure is a testament to its robust fundamentals and growing adoption.
According to recent on-chain data, Ripple’s early investors who purchased below 60 cents are now sitting on gains exceeding 300%. This surge in value has triggered a wave of profit-taking among long-term holders. The 7-day simple moving average of realized profits from XRP wallets reached $68.8 million in early June, highlighting the extent of this distribution.
As expected, the price action has been somewhat affected by this mass exit. Ripple’s token faces resistance at $2.20 due to supply pressure from long-term holders who have accumulated XRP before its meteoric rise. While this could potentially hinder further gains, it highlights the fundamental strength and growing appeal of the token.
Notably, XRP’s ability to absorb profit-taking activity without a significant price drop demonstrates its underlying robustness. As a result, some traders are viewing Ripple’s performance as a contrarian buy signal.
The article ends by highlighting that Ripple’s token is not immune to the broader altcoin market turmoil. CryptoQuant analysis reveals that the 1-year cumulative buy/sell volume difference for altcoins has plunged to -$36 billion. This stark reversal from December 2024 indicates widespread disinterest in alternative cryptocurrencies, which may continue to suppress any potential rally.
Despite these challenges, Ripple’s XRP continues to defy expectations by refusing to drop below $2. The strong fundamentals and positive regulatory developments are likely fueling the token’s ability to maintain its current price level.
Source: coincentral.com
