XRP Price Faces Resistance: $1.7B Sell-Off Threatens ATH
XRP is making significant strides in the crypto market, approaching its all-time high (ATH) following a notable price surge. Currently trading around $3.25, it's just about 4.69% shy of breaching its previous ATH of $3.40.
However, this upward trajectory faces a substantial hurdle: a potential sell-off as investors react to recent price movements.
XRP Investors Trigger Sell-Off
Over the past ten days, XRP holders have offloaded a substantial amount of tokens, totaling over 540 million XRP, valued at approximately $1.74 billion. This sell-off was likely triggered as the price surpassed $3.00, prompting investors to secure profits amid fears of a possible price decline.
This profit-taking behavior could slow down price momentum, potentially impeding XRP's ability to reach new highs. Market sentiment is turning cautious as investors assess the risks. The key question is whether this selling trend will persist or if strong price support can prevent further downside pressure.
Overall macro momentum for XRP remains fragile. The HODLer net position change is currently at a six-week low, indicating that long-term holders (LTHs) have reduced their accumulation of XRP tokens.
The actions of these LTHs can significantly influence XRP's price. If they turn bearish, the balance of buying and selling in the market could shift, potentially exerting downward pressure on XRP.
XRP Price Shows Signs of Testing ATH
XRP is currently trading at $3.24, close to its ATH of $3.40. The recent 35% price increase has drawn significant attention. However, the ongoing sell-off could impede further gains, potentially pushing XRP back toward the $3.00 level if selling pressure intensifies.
Continued selling could prevent XRP from breaking the resistance at $3.40. The next major support level lies at $3.00; failure to maintain this level could lead to a further dip, potentially down to $2.65.
Conversely, if broader market conditions remain bullish and new investors show interest in XRP, the cryptocurrency could continue its ascent. Successfully breaching the $3.40 resistance could propel XRP towards $3.80, establishing a new ATH and strengthening its market position.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions can change rapidly. Conduct thorough research and consult a financial advisor before making investment decisions.