Before rallying to an all-time high, XRP must break $3
Weekly earnings for XRP investors exceeded $5.86 billion. XRP whales are marginally accumulation-oriented despite a 400% average return.
Whales are hanging onto their tokens, keeping Ripple's XRP up 7% on Friday despite ordinary traders' profit-taking. Whales' attitude might propel XRP to $3.57, a record high.
XRP on-chain data shows positive mood amid historic profit-taking. XRP fell 17% in the next three days after rallying to a four-year high of $2.91 on Tuesday.
Profit-taking may have caused the decrease, since the XRP Network Realized Profit and Loss indicator indicates investors have made nearly $5.86 billion since December 1. Investors often take profits during bull markets, particularly at new highs.
The XRP Mean Coin Age indicator reveals that selling activity increased throughout the week across all coin ages, notably the 2-3 year cohorts. A drop in this statistic indicates coin age cohort dispersion.
Despite the latest profit-taking drop, additional XRP on-chain data shows bullish sentiment remains dominating.
Investors still control over 388% of profit, according to the XRP Market Value to Realized Value (MVRV) ratio.
Whales tend to accumulate, therefore merchants may have done much of the recent selling. As seen in the graphic below, investors owning 1M–10M XRP raised their holdings by 260 million tokens in the week.
However, many new XRP whales bought the coin following the US presidential election. If XRP falls near its cost basis, this group may panic sell.
XRP weekly active addresses reached 495K, a sixteen-month high.
XRP regained the 23.6% Fibonacci (Fib) Retracement level after falling momentarily throughout the week. If XRP regains $2.58, it might try $2.92, which it rejected.
XRP might reach its maximum profit objective of a multi-year rounded bottom by rebounding over its all-time high of $3.4 to create a new record of $3.57.
