XRP has been experiencing a steady rise in price over the past few weeks, yet it remains trapped under a crucial barrier. Despite the uptick in price, XRP faces challenges as investor confidence seems to be wavering.
A key resistance level is proving difficult to breach, and the market sentiment is mixed as some investors begin to secure profits.
XRP Holders Are Jumping Ship
XRP saw a massive selloff this week, with realized profits reaching an all-time high since early March. In just 24 hours, approximately $470 million worth of XRP was sold. This surge in selling mirrors a pattern seen earlier in March this year when a slight price increase triggered a sharp selloff.
The market’s reaction to recent price changes indicates that investors remain wary. Historically, a quick bout of selling follows whenever XRP has seen rapid price increases. This behavior has led to significant declines shortly after any upward movements.
The behavior of these whales suggests that their support for the price is uncertain, further complicating XRP’s ability to maintain its recent gains. This adds to the overall weak sentiment surrounding XRP’s recovery.
XRP Price Needs An Escape
XRP has been in an uptrend for the past month and a half, but it is now facing a critical challenge: the four-month-long downtrend line. Previous attempts to break out from this downtrend have failed, and the price remains below this crucial resistance level. While XRP’s recent price action shows promise of recovery, breaking the downtrend remains a significant hurdle.
At the time of writing, XRP is trading at $2.37, struggling to secure $2.38 as a support level. The latest selling activity and lack of strong support suggest that XRP might fall below the $2.27 support level, potentially reaching $2.12. If the selling continues, this could invalidate the uptrend and lead to further declines.
However, there is still a glimmer of hope for XRP. If Bitcoin manages to form a new all-time high (ATH), a broader market rally could boost XRP’s momentum as well. The altcoin’s target would then be to secure $2.56 as support, which would invalidate the bearish thesis and potentially lead to a stronger push upwards.
Disclaimer
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