XRP experienced a significant profit realization as investors sold 695 million XRP worth a total of $1.6 billion as its prices entered a period of stagnation.
Despite the increasing selling pressure, long-term investors continue to show resilience and attempt to defend XRP’s critical support level around $2.00, which could help stabilize market volatility.
According to recent reports, XRP needs to break out of the $2.73 resistance level to push prices towards the all-time high (ATH) of $3.31, but a loss of the $2.00 support could see prices drop to $1.50.
Despite increasing profit taking, XRP’s market dynamics suggest that bullish momentum is struggling as long-term investors attempt to keep prices at critical support levels.
The recent surge in profit taking has caused disappointment among investors, causing the XRP price to stall. Approximately 695 million XRP were sold in the last 24 hours, totaling over $1.6 billion, changing market sentiment and deepening the current market consolidation. Investors have been seeking profits after prolonged pauses in recent weeks, which has increased the volatility in the XRP price.
The market is currently trading at around $2.31, with the consolidation process causing the upward momentum to stall. This pause in particular has raised concerns about XRP’s ability to reach previous highs, and some investors have started to close their positions in an attempt to protect their gains. Continued profit taking could lead XRP into a steeper downtrend and create additional challenges. However, the presence of long-term investors at critical support levels offers the potential for stabilization despite the ongoing selling pressure.
While short-term profit taking remains a concern in the market, long-term investors are playing a key role in protecting XRP’s price from the lows. The MVRV (Market Value Realized Value) Long/Short Ratio shows that investors who have held XRP for a long time are benefiting from this process and are therefore holding on to their positions. This is allowing XRP’s price to remain above the $2.00 support level. If long-term investors continue to hold firm, XRP should avoid a major loss and some market confidence should be maintained.
XRP is currently trading at $2.31, representing a critical balance between maintaining support and attempting to break out of the $2.73 resistance level. Market investors are taking a cautious stance, reflecting concerns about capping momentum post-profit taking when looking at the historical trajectory of XRP’s price action.
If XRP manages to break above the $2.73 resistance level, prices could head towards a new all-time high of $3.31. However, if the $2.00 support is lost, prices could face a significant drop to $1.50, creating additional concerns among investors.