XRP Remains in a Price Range
On January 16, XRP reached a new all-time high of $3.41. However, since then, it has been trading within a range, facing resistance at $3.27 and finding support at $2.94.

This sideways movement suggests a balance between buying and selling pressure. However, on-chain data indicates that a potential downward breakout could be on the horizon in the coming weeks.

Profit-Taking Pressure Could Slow Growth

XRP experienced a massive 500% rally in November 2024, fueled by Bitcoin’s surge and Donald Trump’s victory in the U.S. presidential election. Following this surge, the token saw a mild correction, stabilizing between $2.6 and $2.0 before making a recovery.

By January 16, XRP had broken the $3 resistance level, reaching its new all-time high of $3.41. Since then, it has been trading within a narrow range, indicating that neither buyers nor sellers have complete control.

However, on-chain metrics suggest growing bearish pressure, which could lead to a price drop in the coming weeks.

  • MVRV ratio (Market Value to Realized Value), which measures whether an asset is overvalued or undervalued, indicates that XRP is in a zone where investors may start taking profits.

  • According to Santiment data, the 7-day MVRV is at 1.50% and the 30-day MVRV is at 14.17%, signaling potential sell-offs.

XRP MVRV Ratio. Source: Santiment

When the MVRV ratio is positive, the asset’s market value is higher than its realized value, meaning investors might see an opportunity to cash out their gains. This could lead to increased selling pressure on XRP.

Whales Are Reducing Their XRP Holdings

Another bearish signal is the reduction in XRP holdings by large investors. According to Santiment, whales holding between 10 million and 100 million XRP have reduced their positions by 1%, selling a total of 60 million tokens worth over $180 million in the past month.

XRP Whale Holdings. Source: Santiment

When large holders start liquidating their positions, it often creates additional price pressure, especially if the market is not ready to absorb the increased supply. If this trend continues, XRP could face further downside risks.

XRP Price Prediction: Will It Surge or Drop to $2.13?

If profit-taking pressure intensifies and the price breaks below the current horizontal channel, XRP could drop below $3 and head toward the $2.13 support level.

XRP Price Analysis. Source: TradingView

However, if investors resume accumulating XRP and bulls regain control, the price could attempt a breakout above the $3.27 resistance level. If successful, XRP could retest its all-time high of $3.41 and potentially reach new highs if demand remains strong.

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