Profit-Taking Frenzy Hits XRP Market

Early XRP investors are cashing out at unprecedented rates, liquidating approximately $68.5 million worth of tokens daily according to blockchain analytics. This sell-off coincides with technical indicators suggesting the cryptocurrency could face a 35% price correction, potentially dropping to the $1.35-$1.60 range.

Echoes of 2017 Market Collapse

On-chain data reveals striking parallels between current profit-taking patterns and those preceding XRP's 90% crash in 2018. Glassnode metrics show holders with >300% returns are leading the sell-off, mirroring behavior seen before previous market tops. 【70%】 of XRP's realized market cap has formed since late 2024, creating what analysts describe as a "top-heavy" market structure vulnerable to sharp declines.

Critical Support Levels in Focus

The average purchase price for recent buyers (3-6 month holders) stands at $2.28, while mid-term investors (6-12 month holders) entered at $1.35. With XRP currently trading around $2.14, these levels could become crucial support zones. ——Market observers warn that sustained selling pressure might push prices toward the $1.50-$1.60 range——, testing the resilience of newer investors.

Technical Patterns Signal Caution

Chart analysts identify a descending triangle formation on weekly timeframes, typically considered a bearish reversal pattern. The $1.30 level emerges as a potential downside target, coinciding with the realized price floor. However, a rebound from the 50-week exponential moving average could invalidate this scenario and propel XRP toward $3 resistance.

Market Sentiment Diverges

While profit-taking dominates current activity, the Spent Output Profit Ratio (SOPR) shows diverging trends across holder cohorts. Newer investors (3-6 month holders) demonstrate weakening profit-taking behavior compared to other groups, suggesting potential exhaustion in selling momentum. This creates what traders call a "cognitive conflict point" where technical warnings contrast with emerging on-chain signals.

Industry analysts emphasize that cryptocurrency investments carry substantial risk, urging investors to conduct independent research before making trading decisions. The current market activity highlights the volatile nature of digital assets, where rapid gains can quickly reverse amid changing holder behavior.