XRP News: XRP Price Hits $2.01, But 62.8% of Capital Now Held by New Investors: Is a Crash Coming?

In the latest XRP news, XRP is facing a risky predicament, as on-chain data reveals that new investors hold a majority of its Realized Cap. This rise in short-term capital inflow has raised questions about XRP’s stability, especially as retail-driven momentum now appears to be cooling off. 

Retail-Led Momentum Sparks Concerns for XRP Price

According to statistics from Glassnode, the Realized Cap for XRP has doubled in recent months. Realized Cap refers to the total capital invested in an asset. XRP’s Realized Cap has grown from 30.1 billion in November 2024 to 64.2 billion as of now. Young investors have mainly driven this growth. Most investors holding XRP are aged less than 6 months. As of now, 62.8% of the Realized Cap is held by the new XRP investors.

Graph 1 – Published on Glassnode, April 10, 2025

While this increase in inflows highlights the growing interest in XRP, it also signals potential volatility. Many of these investors hold the token at unrealized losses, as XRP’s recent price crash has taken it to a long-time low. Glassnode warns that such concentration in the hands of new XRP investors could lead to instability. If prices continue to decline, we may see some undesirable XRP news in the future.

Graph 2 – Published on Glassnode, April 10, 2025

Historical Patterns Suggest Risk, Will XRP Price Tank Further?

Glassnode also noted that XRP has seen similar conditions before. The rise in new XRP investors has been followed by bull cycles. With inflows slowing as of now and the price descending sharply, there are concerns that history may not repeat itself this time. This shift in investor interest highlights the need for caution among traders and HODLers alike. While retail enthusiasm has pushed the XRP price, its dependence on new investors could make it vulnerable to sharp corrections if the market turns bearish.

As the XRP price navigates this delicate phase, all eyes are going to turn to whether it can sustain its recent growth. XRP has had its own small victories on its way, with the SEC dropping its case and discussions regarding its inclusion in the US Strategic Crypto Reserve. However, the XRP price’s recovery from the Black Monday crash has been strong, as it has returned to $2 today.

XRP Price Analysis: XRP Returns to $2, Recovery Boosted by Massive Spike!

XRP’s growing interest seems to be paying off, as it has made a strong recovery after the dramatic Black Monday crash. XRP commenced trading at $1.79 yesterday. The $1.8 resistance continued to reject XRP’s advances. However, with a slight correction, XRP was able to form an uptrend. But, the uptrend lost steam right as it broke the resistance, with the XRP price now facing rejection from the $1.846 level. XRP followed a similar pattern. It underwent correction, found support at $1.76, and formed a stable uptrend, taking it beyond the resistance. 

Chart 1: published on TradingView, April 10, 2025

However, just as XRP tested the resistance, a golden cross formed, as it climbed beyond the resistance. The gap between the EMAs widened soon after as XRP launched upward, going up to $2.085 by 18:00 UTC. This skyward launch led the RSI into the overbought region, and XRP price faced a correction. However, the $2.09 level posed strict resistance, and XRP faced a downturn early on April 10, finding support at $1.97.

XRP Price Prediction: Can XRP Break Above $2?

XRP’s return to $2 is a big win for the cryptocurrency. However, as of the latest update, XRP price stood at $2.01, trying to form an uptrend from the $1.97 support. It is worth noting that the uptrend is nowhere close to the resistance, but the RSI is already nearing the overbought zone. This means if the buying pressure does not persist, the XRP price may face a downturn soon. If that does happen, XRP may have to regain $2 late in the day. As we wait for further XRP news related to its inclusion in the strategic reserve, $2 will continue to be a key level.