Here’s Why This XRP Fall Was Always on the Cards

$XRP recently corrected sharply amid a broader market crash, but here’s why this collapse was always on the cards.

For context, the latest correction came after $XRP claimed a new peak of $3.66 on July 18. It immediately gave up this level as August opened and continued to battle the bears above $3 until the recent drop made it lose the psychological mark. Specifically, $XRP collapsed 6.62% yesterday, its largest daily loss in a month.

Profit-Taking Trend Among $XRP Holders

However, before this drop, The Crypto Basic called attention to a market trend that actually pointed to a massive decline. Specifically, while $XRP changed hands above $3, the report revealed that about 94% of $XRP wallets were in profit.

This trend played out again after $XRP recovered to the $1.96 high during the 2020/2021 bull run. Upon reaching this peak, $XRP’s address profitability soared past 90% again. Expectedly, this led to another round of profit-taking trades, with $XRP eventually collapsing by 85%.

$XRP Showing Greater Resilience Now

Considering this trend, market analyst Winny argued that with $XRP’s wallet profitability rising above 90% again, “someone” would eventually sell. This has since materialized, but not in full force. For context, an 85% collapse for $XRP would lead to $0.45, and a 95% drop would result in a price of $0.15.

Notably, Winny suggested that this time might be different due to rapidly growing whale wallets, a spike in network activity, and positive chart patterns. While the profit-taking trades as well as the broader market downturn have pushed $XRP below $3, it still holds firm at $2.9, now attempting to recover the psychological threshold.

$XRP RSI Shows More Room for Growth

Despite it trading at $2.9 at press time, $XRP’s daily RSI still stands at a low 43.05. Notably, when $XRP traded for $2.9 in mid-July, its RSI was already overstretched at 83.69. However, it still saw a run to $3.66 days later. With the current 43.05 RSI value, $XRP has much more room for growth. As a result, a recovery here could push prices to new highs.