As XRP maintains its position above the $2 mark, on-chain data reveals a contrasting trend between early investors and current market participants. While some early holders are locking in profits, new players, including whales, are entering the scene, helping the price remain stable amid heavy distribution.
XRP’s Journey to $2: A 300% Gain for Early Accumulators
According to blockchain analytics firm Glassnode, XRP’s current price levels represent a fourfold increase from its base price prior to the breakout in late 2024. For most of that year, XRP ranged between $0.40 and $0.60, showing little momentum or direction. That changed in early November 2024, when the asset began an impressive upward trend.
By mid-November, XRP had reclaimed $1 for the first time since 2021, and by early December, it surged past its 2021 peak of $1.96. This milestone broke a multi-year resistance and propelled XRP into the $2 to $3 range by January 2025, a level last seen during the 2018 crypto bull run.
Although XRP did not manage to breach its all-time high from 2018, it established a strong support base around $2, showing resilience with only a few brief dips below that level in the months that followed.
Early Investors Begin Cashing Out
Now that XRP is hovering above $2.14, early adopters who accumulated tokens at $0.50 or lower are sitting on gains exceeding 300%. Not surprisingly, Glassnode reports that these investors have begun taking profits aggressively.
Since early June, early investors have been offloading XRP at an estimated rate of $69 million per day. This wave of distribution has likely contributed to XRP’s 9.6% price decline over the last 30 days.
However, XRP’s ability to remain above $2 despite consistent selling pressure has sparked different interpretations. Some analysts view this as a sign of strength, suggesting that the market is effectively absorbing the selling volume. Others caution that the asset could lose momentum unless fresh buying activity steps in to support the price.
Whales Accumulate XRP Amid Rising Network Activity
Interestingly, while early investors are exiting, whale wallets are expanding at a record pace. A separate report by Santiment indicates that large holders are increasingly active. The number of wallets holding at least 1 million XRP has now reached an all-time high of 2,708. At current prices, each of these wallets holds over $2.25 million worth of XRP.
This level of accumulation is unprecedented in XRP’s 12-year history and signals growing confidence among long-term holders and institutional players.
Adding to the bullish outlook, network usage has spiked dramatically. The number of daily active addresses surged to over 295,000, marking a 637.5% increase in just one week. This sharp rise far exceeds the recent norm of 35,000 to 40,000 daily users, indicating a possible shift in market sentiment.
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What Comes Next for XRP?
With the GENIUS Act gaining traction in the U.S. Senate and stablecoin interest on the rise, XRP’s positioning as a neutral bridge asset could strengthen further. At the same time, if whale activity continues to grow and retail sentiment holds firm, XRP may find the momentum needed to rechallenge previous highs.
However, the current distribution by early investors should not be ignored. The market must absorb this supply if XRP hopes to sustain its support level and eventually move higher. In the short term, the battle between distribution and accumulation will determine whether $2 becomes a launchpad or a ceiling.
XRP’s resilience above $2 highlights a significant shift in market dynamics. While early holders are cashing out after massive gains, whales and retail investors appear committed to holding the line. With record-breaking on-chain activity and institutional interest rising, the coming weeks could prove pivotal.
