XRP Price Prediction: Declines Amid $1.84 Billion in Profit-Taking Activity
XRP has pulled back 13% to $1.41 after reaching a 3 year high of $1.63 on November 23.
Recent on-chain data shows profit taking has been rampant with $1.84 billion in realized profits in the past week, the highest since April 2021. As traders lock in gains, selling pressure is increasing and XRP holders may see more pain.
Profit-Taking Drives Selling Pressure
BeInCrypto’s analysis shows XRP holders are aggressively taking profits on this rally. According to Santiment, realized profits are up and short term selling is happening among network participants.
This is correlated with a decline in XRP’s Mean Dollar Invested Age (MDIA) which means long term holders are moving or liquidating their assets.
Key Metric: Nearly 97% of XRP’s circulating supply is now in profit.
Profit-Driven Selling: MDIA tracks the average age of dollars invested in XRP; its decline signals increased selling activity by long-term investors.
Historical Context: Profit-taking tends to rise during market rallies, contributing to bearish momentum.
This profit-driven behavior reflects the psychology of market participants capitalizing on XRP’s climb to multi-year highs.
Daily Technical Outlook for XRP
Despite recent selling pressure, XRP has shown resilience. The cryptocurrency is trading at $1.43, up 7.76% over the last 24 hours, with a trading volume of $8.16 billion. On the technical front, the upward trendline near $1.3840 has acted as strong support, maintaining bullish sentiment.
Resistance Levels: Immediate resistance lies at $1.5289, with further hurdles at $1.6421 and $1.7619.
Support Levels: Critical support zones are marked at $1.3840, $1.3191, and $1.2742.
Technical Indicators: The RSI at 52.42 indicates neutral-to-bullish momentum, while the 50-day EMA reinforces dynamic support.
A break above $1.5289 could spark renewed bullish momentum, while failure to hold above $1.3840 risks deeper corrections.
XRP’s Outlook: Risks and Opportunities
The current market sentiment for XRP reflects a balancing act between profit-taking pressure and sustained bullish interest. With a staggering 97% of its supply in profit, the likelihood of continued selling remains high.
However, strong technical support and rising trading volumes suggest that a breakout above $1.5289 could shift momentum back to the upside.
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