beincrypto.com
$XRP’s price action remains stagnant, with the crypto consolidating for six weeks and failing to reach its all-time high ($ATH) of $3.31.
Investors, frustrated by the lack of momentum, are opting to cash out, signaling increased profit-taking activity. This trend may impact the altcoin’s price trajectory in the coming weeks.
$XRP Investors Are Bowing Out
Realized profits spiked significantly in the last 24 hours, with nearly 695 million $XRP, valued at over $1.6 billion, sold. This increase in profit-taking highlights growing investor dissatisfaction with $XRP’s stagnant price movement. Such behavior has been observed before during prolonged consolidations and could exacerbate selling pressure.
The ongoing consolidation has previously triggered minor sell-offs, which have kept $XRP from gaining upward momentum. As selling frequency increases, the token’s price may face further challenges, though the resilience of key support levels offers hope for stability.
The MVRV Long/Short Ratio reveals that long-term holders are still sitting on profits, contributing to $XRP’s stability. These investors, essential for the health of any cryptocurrency, are demonstrating resilience by holding their positions despite market stagnation.
This resilience has helped $XRP maintain its support level at $2.00, even amid increased profit-taking. As long as these holders continue to back the asset, $XRP is unlikely to experience a major decline in value, barring an unexpected spike in selling activity.
$XRP Price Prediction: No Escape
$XRP is currently trading at $2.31, confined to a consolidation range between $2.00 and $2.73. This sideways movement, persisting for six weeks, has stalled any significant price growth for the altcoin.
The consolidation has kept $XRP from breaching the $2.73 resistance level and approaching its $ATH of $3.31. Given the current market conditions and sentiment, this trend of price stagnation is likely to continue in the near term.
However, a rise in selling pressure could threaten $XRP’s support at $2.00. Losing this critical level could lead to a price drop, potentially reaching $1.50 or lower. Such a scenario would invalidate the current bullish-neutral outlook, resulting in significant losses for investors.