From October 25, 2024, through January 16, 2025, XRP (XRP) experienced one of the most significant upswings during the ongoing bull market, soaring by 600%. This surge occurred as investors flocked in, driven by the expectation that a crypto-friendly administration could boost Ripple and its digital currency.
In this period, the quarterly average of daily active addresses surged by 490%, and the XRP price reached a peak not seen in seven years.
Looking at current trends, data indicates that the excitement around XRP is waning. Investors are now more likely to incur losses instead of profits, which is reducing their willingness to take risks.
Confidence in XRP among retailers might be declining.
Since reaching its lowest point in 2022, Bitcoin (BTC) XRP has seen an impressive rise of 500% to 600%, with much of this growth stemming from a dramatic spike in prices. According to data provided by Glassnode, XRP's daily active addresses surged by 490%. In comparison, Bitcoin saw only a 10% uptick in the same metric over the last four months.
This retail-fueled increase caused XRP’s realized cap to rise from $30.1 billion to $64.2 billion, with about $30 billion of this influx originating from investors over the past half-year. The portion of XRP’s realized cap owned by newer investors (those holding for less than six months) escalated from 23% to 62.8%, indicating a swift redistribution of wealth. Nonetheless, starting from late February 2025, capital inflows have noticeably declined.
The main factor is that investors are now realizing smaller profits and facing larger losses. This is evident from the decreasing realized loss/profit ratio, which has consistently dropped since 2025. According to Glassnode analysts,
Considering the significant investments from individual investors and the substantial wealth primarily held by newer participants, this suggests that confidence among retail investors in XRP might be waning. This trend could potentially extend throughout the larger marketplace as well.
In addition to eroding trust among novice investors, the dispersion of XRP across large holder accounts shows a comparable pattern. shows There has been a consistent rise in whale distributions since early 2025, indicating that major stakeholders have been gradually reducing their stakes. In just the last fourteen days, more than $1 billion worth of positions were liquidated with an average selling price of $2.10.
Related: What is the daily volume of US dollar transfers via XRP?
Is XRP able to maintain the $2 support level?
XRP has repeatedly received support at the $2 mark over recent weeks, however, the likelihood of this cryptocurrency falling beneath this threshold escalates with every subsequent test.
Nevertheless, on the shorter timeframe (LTF) of the 1-hour and 4-hour charts, a bullish divergence is visible for XRP. This happens when the price creates a new low but the RSI establishes a higher peak than before.
Given a potential valuation difference ranging from $2.08 to $2.13, XRP could experience a short-term upturn within this band, particularly should the broader cryptocurrency market recover from being oversold. From a longer-term perspective, however, XRP seems to be displaying bearish tendencies as it forms an inverse head-and-shoulders configuration on higher timeframe charts, pointing towards a possible downside toward approximately $1.07.
The altcoin might receive support from the 200-day moving average (shown as an orange line) near the $1.70 to $1.80 range; however, the XRP price hasn’t reached this level since November 5, 2024.
Related: Bitcoin falls 8%, US markets lose $2 trillion in value — Can traders anticipate an oversold rebound?
The content of this article neither provides investment guidance nor suggests specific actions. All investments and trades come with risks, so readers ought to perform independent investigations before reaching decisions.