XRP Investors Profit Taking Hits $1.6 Billion as Consolidation Continues

The price of XRP has been holding steady over the past six weeks, without managing to touch its record high of $3.31. In other words, it’s been a period of consolidation for this cryptocurrency.

Disappointed investors, due to the slow progress, are choosing to sell off their holdings, suggesting a rise in profit-making actions. This pattern might influence the direction of the altcoin’s price movement over the next few weeks.

XRP Investors Are Bowing Out

In the past 24 hours, profits soared substantially as approximately 695 million XRP, worth more than $1.6 billion, were sold. This surge in profit-taking suggests a rising unease among investors about XRP’s price stagnation. Historically, such behavior has been witnessed during extended periods of consolidation and may intensify the selling pressure.

Previous instances of consolidation have led to brief drops in XRP’s value, hindering its potential for significant growth. With more sellers entering the market, the token’s price could encounter additional difficulties. However, the strength of crucial support levels suggests a possibility of maintaining stability.

The MVRM (Moving Average Ratio Value) Long/Short Indicator suggests that long-term investors continue to hold onto their profits, which helps maintain XRP’s stability. These crucial investors, who are vital for a cryptocurrency’s wellbeing, show tenacity by keeping their investments even during market slumps.

This robustness has allowed XRP to hold its price at approximately $2.00, even during periods of heightened profit-taking. As long as these supporters persist in their backing of the asset, it seems unlikely that XRP will undergo a significant drop in value, unless there’s an unexpected surge in selling activity.

XRP Price Prediction: No Escape

As an analyst, I’m observing that at present, XRP is being traded at approximately $2.31. It appears to be contained within a consolidation phase, with its boundaries set between $2.00 and $2.73. Over the past six weeks, this sideways trend has halted any substantial price advancement for this altcoin.

As a crypto investor, I’ve noticed that the consolidation in XRP has prevented it from breaking through the $2.73 resistance point and reaching its all-time high (ATH) of $3.31. Given the present market climate and general sentiment, it appears that this pattern of price stability will persist for a while.

In other words, if buying pressure decreases and selling pressure increases, XRP’s value at around $2.00 could be compromised. If this key level is breached, there’s a possibility that the price might fall to as low as $1.50 or even lower. Such a situation would change the current view from bullish-neutral to bearish, causing potential substantial losses for investors.

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2025-01-08 10:34