XRP’s recent price action has been a bit of a rollercoaster, with the altcoin taking a sharp dive from its all-time high (ATH). Now, it’s stuck in a sideways trend, clinging to the $3 support level, which has become a psychological battleground for investors. The question is: Can XRP hold its ground, or will it slide further down?
XRP Investors Are Cashing Out
In the last 24 hours, a staggering $845 million worth of XRP has been sold off. Yep, that’s one of the highest single-day sell-offs this month. Looks like investors are getting jittery, unsure about the coin’s stability. This surge in selling volume reflects growing skepticism around XRP’s short-term future.
As the price fluctuates, many investors are locking in their profits, especially considering XRP hasn’t managed to make a solid push toward its ATH of $3.66 in quite some time. It’s no wonder they’re jumping ship.
The Liveliness Indicator Suggests More Selling
Here’s where it gets interesting. XRP’s long-term holders (LTHs) are getting cold feet, too. The Liveliness indicator, which tracks their movements, just hit a four-month high, signaling that these big players are finally selling off their XRP. Typically, when LTHs start distributing their holdings, the price takes a hit, and that’s exactly what we’re seeing.
With Liveliness surging, XRP’s price could be facing more downward pressure as long-term holders cash out. If this trend continues, we could see the $3.00 psychological support crumble, leaving the price to slide down to $2.65.
XRP Needs to Hang On to $3.00 or Risk More Losses
Right now, XRP is hanging on by a thread, trading at $3.15, just above that crucial $3.00 support. This level has been tested sparingly, but it’s absolutely critical. If XRP can’t hold it, we might see a sharp drop, possibly targeting $2.65.
Given the current market dynamics, it seems likely that XRP will face more downward momentum as sell-offs continue. But here’s the flip side: if the broader market turns bullish and sentiment shifts, XRP could turn things around. A break above the $3.41 resistance could signal a return to upward momentum and bring XRP closer to its ATH of $3.66. XRP has some tough choices ahead!
Roman Zaika
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