beincrypto.com
$XRP has recently faced a sharp drop from its all-time high ($ATH), with the price stabilizing within a sideways trend.
The altcoin is currently holding above the crucial $3 support, which has acted as a psychological level for investors. However, with increasing sell-offs, $XRP could struggle to maintain this support in the coming days.
$XRP Investors Are Selling
The Net Realized Profit/Loss indicator shows a significant $845 million worth of sell-offs in the last 24 hours, marking one of the highest single-day sell-offs this month. This high selling volume suggests that many $XRP investors are still uncertain about the coin’s stability.
$XRP’s price fluctuations reflect broader investor concerns about the coin’s short-term trajectory. The uncertainty is prompting many to secure their profits, especially as the altcoin struggles to push back toward its $ATH of $3.66.
$XRP’s macro momentum is being heavily influenced by the recent uptick in Liveliness, which tracks the movement of long-term holders (LTHs). Currently, Liveliness is at a four-month high, signaling that many long-term holders are selling their $XRP. This shift from accumulation to distribution can have a negative impact on the price, as LTHs typically have a significant influence on $XRP’s value.
When Liveliness increases, it suggests that $XRP holders are capitalizing on the recent gains, which could lead to further selling pressure. If this trend continues, $XRP could face downward pressure, with the risk of breaching the psychological support level of $3.00.
$XRP Price Needs To Hold On
$XRP is currently trading at $3.13, holding just above the support level of $3.00. Although this support has not been frequently tested, it remains a crucial level for the altcoin. Should $XRP fail to maintain this level, further downside pressure could push it below $3.00, potentially targeting $2.65.
Given the current market dynamics and the sell-off pressure from investors, $XRP’s price is likely to face further downward momentum. If the support at $3.00 is lost, it could create further selling pressure.
However, if the broader market exhibits bullish signals and investor sentiment shifts, $XRP could reclaim its bullish trend. A break above the $3.41 resistance level would signal a potential return to upward momentum, bringing the coin closer to its $ATH of $3.66.