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$XRP has been making waves in the cryptocurrency market, nearing a new all-time high ($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.