-
XRP is approaching its all-time high (ATH) of $3.40, but a recent $1.7 billion sell-off may slow its momentum, risking a price correction to $3.00.
-
More than 540 million XRP tokens have been sold within the last ten days, with long-term holders contributing to the selling pressure, creating market uncertainty.
-
Despite the sell-off, XRP’s price remains resilient at $3.24, with a potential breakout above $3.40 possibly driving the price towards $3.80, according to COINOTAG analysis.
XRP nears its $3.40 ATH amid heavy sell-offs totaling $1.7B, with long-term holders influencing market dynamics and potential for a surge to $3.80.
XRP Investors Move To Sell Amid Profit-Taking Pressure
In the past ten days, XRP holders have sold over 540 million tokens, equating to approximately $1.74 billion in value. This significant sell-off was likely triggered as XRP’s price surpassed the $3.00 threshold, prompting investors to secure profits amid fears of a price reversal. Such profit-taking behavior introduces a risk of slowing XRP’s upward momentum, potentially limiting its ability to reach or surpass its previous ATH of $3.40.
The market sentiment has shifted towards caution as investors weigh the risk of further price fluctuations. The selling pressure, particularly from long-term holders (LTHs), adds complexity to XRP’s price trajectory. Whether this selling trend will continue or if strong support levels can absorb the pressure remains a critical question for traders and analysts alike.
XRP Exchange Balance. Source: Glassnode
The macro momentum for XRP is currently fragile. The net position change among HODLers has dropped to a six-week low, indicating a slowdown in token accumulation by long-term holders. These holders play a pivotal role in XRP’s price dynamics, and their reduced buying activity could signal a shift towards a more bearish outlook.
If LTHs increase their selling or reduce their holdings further, the market could experience amplified downward pressure, potentially reversing recent gains. This behavior underscores the importance of monitoring LTH activity as a key indicator of XRP’s future price movements.
XRP HOLDer Net Position Change. Source: Glassnode
XRP Price Shows Signs Of Approaching New ATH
Currently trading at $3.24, XRP is within striking distance of its all-time high of $3.40. The altcoin has experienced a notable 35% price increase over the past week, attracting significant market attention. However, the recent surge in selling activity poses a threat to sustaining this upward momentum.
Should selling pressure intensify, XRP could face resistance at the $3.40 level, potentially causing a retracement to the $3.00 support zone. Failure to hold this support may lead to further declines, with the next critical support level around $2.65.
XRP Price Analysis. Source: TradingView
Conversely, if bullish market conditions prevail and investor interest continues to grow, XRP could break through the $3.40 resistance. Such a breakout would likely propel the price towards $3.80, setting a new ATH and strengthening XRP’s position in the crypto market.
Conclusion
XRP is at a critical juncture, balancing between profit-taking pressures and the potential for new highs. The recent $1.7 billion sell-off by long-term holders introduces uncertainty, but strong price support around $3.00 could stabilize the market. Investors should closely monitor LTH activity and market sentiment, as these factors will be decisive in determining whether XRP can overcome resistance at $3.40 and push towards a new ATH of $3.80.
