XRP price remains stagnant, with the crypto consolidating for six weeks and failing to reach its all-time high (ATH) of $3.31.
Investors, frustrated by the lack of momentum, are opting to cash out, signaling an increase in profit-taking activity. This trend could impact the altcoin’s price trajectory in the coming weeks.
XRP Investors Are Giving Up
Profit-taking has increased significantly over the past 24 hours, with nearly 695 million XRP, valued at over $1.6 billion, sold. This increase in profit-taking highlights investors’ growing dissatisfaction with XRP’s stagnant price action. This behavior has been observed before during prolonged consolidations and could exacerbate selling pressure.
The ongoing consolidation has already triggered small sell-offs, which have prevented XRP from gaining upward momentum. As the frequency of sales increases, the token price may face more challenges, although the resilience of key support levels offers hope for stability.
XRP Realized Profits. Source: Santiment
The MVRV Long/Short Ratio reveals that long-term holders are still in profit, contributing to the stability of XRP. These investors, who are essential to the health of any crypto, are demonstrating resilience by holding their positions despite the market stagnation.
This resilience has helped XRP hold onto its support level at $2.00 even amid increased profit-taking. As long as these holders continue to support the asset, XRP is unlikely to experience a major drop in value unless an unexpected spike in selling activity occurs.
MVRV Long/Short Ratio do XRP. Fonte: Santiment
XRP Price Prediction
XRP is currently trading at $2.31, confined to a consolidation range between $2.00 and $2.73. This sideways movement, persistent for six weeks, has prevented any significant price growth for the altcoin.
The consolidation has prevented XRP from breaking above the $2.73 resistance level and approaching its ATH of $3.31. Given the current market conditions and sentiment, this price stagnation trend is likely to continue in the near term.
XRP Price Analysis. Source: TradingView
However, an increase in selling pressure could threaten XRP’s support at $2.00. However, losing this critical level could lead to a price drop, potentially reaching $1.50 or lower. Furthermore, such a scenario would invalidate the current bullish-neutral outlook, resulting in significant losses for investors.
The article XRP Investors Realize $1.6 Billion in Profits appeared first on BeInCrypto.
