XRP Price News: Late Buyers Capitulate as XRP Nears $2

The latest data from Glassnode shows that late buyers are paying the bill for the recent XRP (XRP) sell-off, as they have been selling into losses as the token nears the $2 level.

For starters, data from the crypto analytics firm emphasized that 42% of all XRP wallets are now sitting on big losses of up to 40% as they bought during the rally, at prices ranging from $2.5 to $3.

These were late buyers who probably succumbed to the FOMO that the latest bull market created and piled in at the worst time possible.

Then, President Donald Trump derailed what seemed to be the beginning of altseason as he slapped China with an additional 100% tariff.

These late bulls are now capitulating and selling into losses as per Glassnode. The chart below shows that realized profits commonly spiked during cycle peaks. However, there’s an interesting uptrend in that metric at a point when the price is tanking.

XRP Realized Profits – Source: Glassnode

What this indicates is that even early buyers who were sitting on some profits may have started to close their XRP longs, possibly as they expect that the downturn will accelerate.

Just a year ago, XRP sat at around $0.60. Those who held the token back then and did not sell during the rally are still sitting on returns exceeding 250%. Hence, they may opt to take some of those profits off the table as a precaution.

Meanwhile, late buyers could also be cashing out. Even if they bought at $2, they are sitting on some small profits but may be expecting further downside ahead.

Is Wall Street Buying Into the Panic?

At a point when a flood of altcoin-linked ETFs is about to hit the market, this seems like a contrarian signal. Institutional demand may rise as a result of this trend.

Hence, while weak-handed players are selling at these low prices, institutional investors may be the ones picking up XRP at a discount compared to where the token was a few months ago.

The recently launched Canary Capital XRP spot ETF ($XRPC) has already attracted $277 million in assets in just a few days, reflecting that Wall Street’s interest in the token is growing.

Combined with the REX-Osprey XRP ETF (XRPR), total assets on spot XRP ETFs are nearing $400 million. Meanwhile, CoinShares, Bitwise, and 21Shares are waiting to get listed soon.

These ETF launches could cushion the latest selling spree, and late buyers’ capitulation sets the stage for a massive entry of fresh capital that could propel XRP to new heights.

Can XRP Hit $4 This Year?

In the past 24 hours, XRP has lost 2% but trading volumes have retreated. This may indicate that the selling pressure is decelerating already.

XRP/USD 4-Hour Chart (Coinbase) – Source: TradingView

The $2.10 level is the key support to watch. If this price zone falters and bulls fail to keep XRP above it, the price could collapse.

However, panic has already reached extreme levels, and this also tends to be a contrarian signal. Yesterday, the Fear and Greed Index hit 15 for the third time this year. The last time this happened, cryptos rallied and XRP doubled.

The latest wave of panic-selling was prompted by the Fed’s apparent reluctance to cut rates in December. If employment numbers this week and inflation data in November is better than expected, the market could turn and resume its upward trajectory.

Only that this time, XRP will start at a much higher floor, meaning that the token could hit much higher levels.