- XRP is trading sideways around $3.15, just above critical support at $3.00, following a steep pullback from its $3.66 high.
- Profit-taking has surged, with over $845 million in realized gains in 24 hours.
- Rising exchange inflows and weakening market sentiment suggest potential downside.
XRP, one of the leading altcoins by market capitalization, has entered a turbulent phase following a steep retreat from its all-time high. After reaching a peak near $3.66, the cryptocurrency has settled into a sideways trading pattern, raising concerns among investors about its short-term direction.
Currently priced at around $3.15, XRP remains just above a key psychological support level at $3.00. However, the asset is under growing strain, with indicators suggesting more downside could be ahead if selling continues at the current pace.
Surge in Realized Profits Signals Caution Among Holders
Recent market data reveals a substantial increase in profit-taking activity among XRP holders. On-chain metrics show over $845 million in realized profits within a 24-hour window, one of the highest single-day totals this month.
Source: Glassnode
This wave of exits from positions reflects a broader sense of uncertainty, particularly as XRP struggles to maintain upward momentum.
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Such selling behavior often points to investor skepticism about the token’s ability to revisit recent highs. In the current climate, many appear more interested in locking in gains than holding through market volatility.
Long-Term Holders Begin Distributing Tokens
Another important trend is emerging among long-term XRP holders. The “Liveliness” indicator, which measures the movement of coins held over extended periods, has climbed to its highest level in over four months. This uptick suggests that holders who had previously remained inactive are now moving or selling their tokens.
This shift from long-term holding to active selling is typically seen as a bearish signal. When experienced investors begin to offload their assets, it often precedes further market weakness, especially if no new demand steps in to absorb the supply.
Exchange Inflows Add to Bearish Momentum
Adding to the pressure, there has been a noticeable rise in the volume of XRP transferred to centralized exchanges in recent days. This often signals preparation for selling, especially during periods of market stress.
Combined with subdued derivatives activity and a decline in buy-side leverage, the market tone around XRP has grown increasingly cautious.
Analysts tracking market sentiment point to reduced open interest in futures contracts and a shift in momentum indicators such as the MACD, both of which support a short-term bearish outlook.
As a result, the $3.00 support level now stands as a crucial battleground for XRP’s near-term direction. A decisive break below this level could trigger further selling, potentially pushing the price toward $2.65 or even lower.
These zones have acted as previous consolidation points and may again serve as potential downside targets if bearish sentiment persists.
While the support has held so far, it has not been thoroughly tested in this cycle. Without strong buying interest to reinforce it, a breakdown could lead to accelerated losses.
Looking Ahead: Stabilization or Continued Decline?
XRP’s current price action reflects a broader pattern often seen after significant rallies. With long-term holders beginning to exit, speculative activity cooling off, and support levels being tested, the next few days could prove pivotal.
If buyers step in and defend the $3.00 level, a period of consolidation could follow, potentially setting the stage for a recovery. However, failure to hold this support may lead to deeper corrections and test investor confidence further.
For now, all eyes are on the $3.00 line. It remains to be seen whether XRP can stabilize or if the downward trend will intensify in the days ahead.
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