XRP Faces Waning Investor Demand as Bull Market Falters: Can It Hold the $2 Line?

The Rise and Stall of XRP’s Bull Run

XRP, the native token of Ripple, rode a wave of euphoria from October 25, 2024, to January 16, 2025, surging 600% to a seven-year high. Priced at $2.04 as of April 4, 2025, this rally—among the strongest in the current bull market—was fueled by hopes of a pro-crypto U.S. presidency boosting Ripple’s prospects. Daily active addresses soared by 490% during this period, per Glassnode data, reflecting a retail-driven frenzy that catapulted XRP’s realized cap from $30.1 billion to $64.2 billion. A staggering $30 billion of that growth came from new investors in just six months, with their share of the realized cap leaping from 23% to 62.8%.

XRP’s 1-day chart. Source: TradingView

But the momentum has stalled. Since late February 2025, capital inflows have dwindled, and the speculative fever that once propelled XRP is fading. As Bitcoin (currently $82,634) maintains a steadier 500% climb since its 2022 low, XRP’s parabolic spike now looks like a double-edged sword—impressive but fragile.

Confidence Crumbles Among Retail and Whales

The numbers tell a sobering story. Glassnode’s realized profit/loss ratio, a gauge of investor gains versus losses, has been sliding throughout 2025. “Investors are locking in fewer profits and facing higher losses,” analysts note, pointing to a “retail-dominated” surge now losing steam. With 62.8% of XRP realized cap in the hands of investors under six months old, this concentration of “new money” signals vulnerability. “Retail confidence in XRP may be slipping,” Glassnode warns, a sentiment that could ripple across the broader crypto market.

XRP's new investor realized the cap. Source: Glassnode

Whales—long-term holders with deep pockets—are also stepping back. Over the past 14 days, more than $1 billion in XRP positions have been sold off at an average price of $2.10, reflecting a steady exodus since January. This whale outflow, paired with declining retail interest, paints a picture of an asset under pressure, caught between fading hype and profit-taking.

Whale flow 30-day moving average. Source: CryptoQuant

$2 Support: A Fragile Fortress

XRP has clung to the $2 level as a psychological and technical anchor, finding support there repeatedly in recent weeks. Yet each retest weakens its resolve, increasing the odds of a breach. On shorter time frames—like the 1-hour and 4-hour charts—a glimmer of hope emerges: a bullish divergence, where the price hits a lower low while the Relative Strength Index (RSI) forms a higher low. This pattern hints at a potential relief rally, possibly into the $2.08–$2.13 fair value gap, especially if the wider crypto market bounces from oversold conditions.

XRP 4-hour chart. Source: TradingView

Zoom out, though, and the outlook darkens. On higher time frames, XRP chart reveals an inverse head-and-shoulders pattern—a bearish signal—with a projected target near $1.07. The 200-day moving average, hovering between $1.70 and $1.80, could act as a safety net; it last supported XRP on November 5, 2024. But with bearish momentum building, a drop below $2 could trigger a sharper decline, testing trader resolve.

Will Traders Defend the Line?

The question looms: can XRP hold $2, or is a deeper correction inevitable? The altcoin’s fate hinges on multiple forces. A broader market recovery could spark that short-term bounce, giving bulls a chance to regroup. Yet the exodus of whales and waning retail faith suggest a tougher road ahead. “The rapid wealth shift to new investors made XRP rally explosive but unstable,” one analyst observed. If selling pressure persists, $1.70—or even $1.07—may come into play sooner than bulls hope.

XRP 1-day chart. Source: TradingView

For now, XRP teeters on the edge. Traders eyeing the $2 support face a high-stakes decision: defend the line or brace for a fall. As the bull market sputters, XRP next move could signal whether its 2024 glory was a peak—or just a prelude.

This rewrite sharpens the narrative, enhances readability, and frames XRP predicament with a mix of data-driven insight and engaging prose. It keeps the technical details intact while making the stakes clear for a broader audience. Let me know if you’d like further tweaks!