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XRP has experienced a major spike in profit-taking, with traders selling off over 695 million XRP worth $1.6 billion amid ongoing price stagnation.
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Despite increased selling, long-term holders demonstrate resilience, maintaining critical support around the $2.00 mark, which could stabilize XRP’s market activity.
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According to recent reports, breaching the $2.73 resistance is essential for XRP to target its all-time high (ATH) of $3.31, but any loss of the $2.00 support may drive prices down to $1.50.
Amid heightened profit-taking, XRP’s market dynamics reveal a struggle for bullish momentum as long-term holders attempt to stabilize prices around key support levels.
XRP Faces Increased Selling Pressure
The recent surge in profit-taking activity is linked to **frustration among investors** as XRP’s price remains stagnant. Over the last 24 hours, sales totaling approximately 695 million XRP, valued at over $1.6 billion, indicate a shift in sentiment that could intensify the current market consolidation. In the past weeks, traders have shown a tendency to take profits after prolonged periods of little to no movement, exacerbating the fluctuations in XRP’s price.
With the market currently hovering at around $2.31, the consolidation phase has placed **upward momentum on hold**. Most notably, this lack of movement has raised concerns regarding XRP’s ability to reach previous highs, compelling some investors to liquidate their positions to secure gains.
The sustained profit-taking activity poses additional challenges as frequent sell-offs may lead XRP into a steeper downward trend. Even so, the **presence of long-term holders** at critical support levels offers potential for stabilization, despite ongoing selling pressure.
Stability Amidst Market Turmoil
While short-term profit-taking remains a concern, long-term investors play a crucial role in sustaining XRP’s floor price. The MVRV (Market Value to Realized Value) Long/Short Ratio continues to signal that those holding XRP for extended periods are benefiting from their investments, as indicated by their persistence in maintaining positions throughout this consolidation phase.
This strength within the long-term holder community has ensured that XRP’s price stays resilient above the **$2.00 support threshold**. If these investors hold firm, XRP could avoid substantial depreciation, maintaining some level of market confidence that encourages a bounce back.
Outlook for XRP: Will Resistance Break?
XRP’s current trading price of $2.31 illustrates a precarious balance between sustaining support and attempting to break through the $2.73 resistance level. **Market traders are cautious**, reflecting on the recent history of XRP’s price behavior, which has inhibited momentum following the recent profit-taking wave.
Expectations surrounding XRP’s movement remain bearish unless it successfully conquers the resistance level, which would pave the way for a potential rally toward its previously achieved ATH of $3.31. The pressure on the support at $2.00 remains alarming, as faltering at this level could result in a downturn as severe as $1.50, prompting additional concerns among investors.
Conclusion
In summary, XRP’s recent volatility can be attributed to increased profit-taking amidst prolonged stagnation. With long-term holders providing some level of support around the $2.00 mark, there exists potential for **price stabilization**. However, the inability to breach the $2.73 resistance could lead to further declines, emphasizing the importance for investors to monitor market conditions closely for underlying trends and signals.
