XRP has demonstrated significant strength in the recent market cycle, but a closer look at on-chain data reveals a complex dynamic between bullish ecosystem developments and increasing profit-taking from early investors. The token, currently trading around $2.27 on pairs like XRPUSDT, has posted a remarkable rally from its sub-$0.60 base seen in previous months, delivering gains exceeding 300% for long-term holders. This impressive performance, however, has triggered a substantial wave of distribution. The current price reflects a 2.63% gain over the last 24 hours, with a trading volume of over 261,000 on the USDT pair, indicating active market participation. However, the price has struggled to decisively break key resistance, hovering near its 24-hour high of $2.2893.

On-Chain Data Reveals Mounting Sell Pressure on XRP

The resistance faced by XRP is not merely technical; it's rooted in significant on-chain activity. According to on-chain data from Glassnode, the 7-day moving average of realized profits from XRP wallets recently surged to $68.8 million, marking a yearly high. This metric is a clear indicator that investors who accumulated XRP at lower prices are now capitalizing on its strength, creating a supply overhang that is capping the upside potential. This profit-taking pressure helps explain why XRP has met persistent selling interest near the $2.20-$2.30 zone, despite a backdrop of positive news flow. This trend is not isolated to XRP. A recent analysis from CryptoQuant highlights a broader malaise in the altcoin market. According to independent analyst Burak Kesmeci, the 1-year cumulative buy/sell quote volume for altcoins, excluding BTC and ETH, shows a staggering negative $36 billion, suggesting significant capital outflows and a lack of new investment.

Broader Altcoin Market Remains Subdued

While Bitcoin (BTCUSDT) trades robustly above $109,400 and Ethereum (ETHUSDT) holds above $2,570, the momentum has failed to ignite a widespread 'altseason'. Kesmeci noted that apart from specific narratives like XRP and Solana (SOL), the broader altcoin ecosystem remains in a challenging phase. This sentiment is crucial for XRP traders, as it suggests the token is fighting against a broader market headwind. A sustained rally for XRP will likely require not just its own ecosystem catalysts but also a revival in general risk appetite for altcoins. For now, traders are closely watching the immediate support around the 24-hour low of $2.2163 and the aforementioned resistance near $2.2893. A break above this level could invalidate the short-term selling pressure, while a fall below support could signal a deeper correction.

Ripple Fortifies Ecosystem with Wormhole Integration

Counterbalancing the short-term sell pressure is a significant fundamental development from Ripple. The company announced the integration of Wormhole, a premier cross-chain messaging protocol, with the XRP Ledger (XRPL). This strategic move is designed to enhance interoperability and cater to institutional demand for seamless asset transfers across diverse blockchain networks. The integration enables the movement of XRP, stablecoins, and tokenized real-world assets (RWAs) between the XRPL and over 35 other blockchains, including major players like Ethereum, Solana, and Avalanche (AVAX). In a press release, Ripple CTO David Schwartz emphasized the critical role of interoperability for mass adoption, stating, "If you want real mass adoption, interoperability is essential."

This development solidifies the XRPL's position as a hub for institutional-grade finance and the burgeoning RWA sector. It builds on existing projects, such as a Dubai-based real estate tokenization platform built on the ledger. Furthermore, Ripple's own stablecoin, Ripple USD (RLUSD), which has a significant supply across both the XRP and Ethereum chains, stands to benefit from this enhanced cross-chain functionality. For traders, this news provides a strong long-term bullish thesis. It suggests that while early retail investors may be taking profits, institutional interest and foundational infrastructure are growing stronger. The key trading question is whether these long-term fundamentals can absorb the current distribution and propel XRP to new highs in the current cycle.