Ripple has been in a consolidation phase for the past two weeks, preventing it from making a new all-time high (ATH).
While the altcoin continues to hold above a key support level, it is struggling to gain the momentum needed to breakout. A shift in investor behavior could change this trajectory.
XRP Investors Face Losses
Losses have dominated Ripple’s trading volume. With a new all-time high still out of reach, investors have started moving their holdings. This trend has led to many Ripple holders facing losses on their trades over the past two weeks, impacting overall market sentiment.
If this pattern continues, traders may begin to withdraw from participation, reducing transaction activity. Reduced on-chain participation could negatively impact Ripple’s price, increasing the risk of an extended consolidation or a potential decline below key support levels.
The difference between the long/short MVRV indicates that long-term holders (LTHs) are still in profit, benefiting from Ripple’s recent price action. These investors have not yet turned to selling, showing resilience despite short-term volatility. Their continued holding is crucial to maintaining stability.
If long-term holders maintain their positions, Ripple’s price is unlikely to face a sharp correction. This behavior indicates confidence in the asset’s long-term potential. It also suggests that Ripple could maintain its upward trend if market conditions remain favorable.
XRP Price Prediction: Uptrend to New Level
XRP is currently witnessing a slight uptrend after bouncing off the $2.95 support level. While the altcoin briefly dipped below this level during today’s decline, it quickly recovered and remained above the trend line. This has reinforced the bullish momentum.
The cryptocurrency is now sitting less than 10% away from forming a new ATH above $3.40. If the uptrend continues and long-term holders hold firm, XRP could break this resistance and set a new all-time high in the coming days.
However, if XRP tests $2.95 and fails to hold this support, the price could decline further. A break below this level will increase the bearish pressure. This could push XRP down to $2.73 or lower, invalidating the bullish thesis.
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