XRP has recently faced significant selling pressure, which threatens to extend its multi-month downtrend.
Despite earlier gains, investors appear to be locking in profits, potentially triggering a price correction that could stall the altcoin’s recovery.
XRP Investors Move To Sell
Exchange reserves showed a sharp spike last week, with over 17 billion XRP sent to Binance in just seven days. This amount, valued at more than $40.2 billion, reflects investors’ moves to secure profits or break even after the recent price rally. The surge in selling resembles a similar event in February 2024, which was followed shortly by a decline in XRP’s price.
Such large-scale selling indicates that the market is cautious, with holders unwilling to risk potential downturns. The profit-taking reflects investor uncertainty, making a short-term price correction likely as supply outweighs demand.
Technical indicators like the MACD point toward a weakening bullish momentum. The momentum reversal will be confirmed if the MACD line crosses below the signal line (red), signaling a bearish crossover. This pattern often precedes increased selling activity and downward price movement.
Currently, the MACD histogram shows shrinking green bars, further implying that the bullish trend is losing steam. If the crossover occurs soon, XRP could face intensified selling pressure, which would drive prices lower and deepen the ongoing downtrend.
XRP Price Faces A Downtrend
XRP is down 6% in the last 24 hours, trading at $2.39. The altcoin is trapped under a nearly four-month downtrend line, signaling a potential continuation of its decline. This technical resistance poses a significant challenge for any near-term recovery.
If XRP price fails to hold the $2.38 support, it could face correction to $2.12, with a further drop pushing the price toward $2.02. Breaking below $2.02 would likely accelerate losses, potentially dragging XRP down to $1.94 or lower, marking a considerable setback for investors.
Conversely, a bounce from $2.12 and flipping $2.27 into support could spark renewed bullish momentum. This move would pave the way for XRP to challenge resistance at $2.56. Surpassing this level would invalidate the bearish thesis and could mark the end of the protracted downtrend, offering hope for sustained price recovery.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
