XRP has been making waves in the cryptocurrency market, nearing a new all-time high (ATH) after a significant price surge. The altcoin, currently trading at $3.25, is just 4.69% away from breaking its previous ATH of $3.40.
However, while the price continues to rise, XRP faces a growing risk of sell-offs as investors react to recent price movements.
XRP Investors Move To Sell
Over the last ten days, XRP holders have offloaded a substantial amount of the token, selling over 540 million XRP, worth approximately $1.74 billion. The surge past $3.00 likely triggered this sell-off, as many investors feared a price decline and opted to lock in their profits.
This fear-driven selling could cause a pullback in price momentum, which could hinder XRP’s potential to reach new highs. As investors weigh the risk of further price movements, the mood around XRP is turning more cautious. The question remains whether the profit-taking behavior will persist or if the strong price support can prevent further downside pressure.
The overall macro momentum for XRP remains fragile. The HODLer net position change currently stands at a six-week low, a sign that long-term holders (LTHs) have slowed the pace of XRP token accumulation.
These LTHs hold significant sway over XRP’s price movement, and their behavior could be a crucial factor in determining whether the price will continue its rise or experience a decline. If these holders turn more bearish, it could shift the balance of buying and selling in the market, potentially causing further downward pressure on XRP.
XRP Price Shows Signs Of New ATH
XRP is currently trading at $3.24, just a small margin away from its ATH of $3.40. The recent 35% price rise over the past week has generated significant attention, and many are waiting for the altcoin to reach the long-anticipated $3.40 mark. However, the recent sell-off could impede further upward momentum, potentially pushing XRP back down to the $3.00 level if the selling pressure increases.
If the selling continues and additional profit-taking occurs, XRP could struggle to break past the resistance at $3.40. The next major support level for the altcoin is at $3.00, and if it fails to maintain this level, the price could dip further, potentially moving to $2.65.
However, if the broader market conditions remain bullish and new investors continue to show interest in XRP, the cryptocurrency could continue to surge. Should XRP manage to breach the $3.40 resistance level, it could push further towards $3.80, establishing a new ATH and reinforcing its market position.
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