XRP Price Dip: Is the $2 Support Level Holding?

The recent price surge of XRP, reaching a 7-year high, has sparked much excitement among investors, with gains of up to 600% between October 2024 and January 2025. However, a closer look at the data reveals a concerning trend: investor enthusiasm appears to be waning.

Data shows a significant increase in daily active addresses (490%) during the bull run, indicating increased retail participation. This influx of capital pushed XRP’s realized cap from $30.1 billion to $64.2 billion, with a staggering $30 billion pouring in from new investors within the past six months.

But the party may be over. Recent analysis suggests a decline in capital inflows since late February 2025, with investors now facing increasing losses rather than profits. This shift is reflected in the realized profit/loss ratio, which has steadily declined.

Glassnode analysts note that the concentration of wealth in the hands of newer investors suggests waning confidence. This concern is further emphasized by data showing a steady increase in whale outflows since the beginning of 2025, with over $1 billion in positions offloaded in the past 14 days at an average price of $2.10.

The Crucial $2 Support: While XRP has found support at $2 several times, repeated retests increase the likelihood of a fall below this level. While short-term charts show some bullish divergence, the long-term outlook appears bearish, with potential targets as low as $1.07.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct thorough research before making any investment decisions.