XRP Sinks As Traders Cash Out $1.84 Billion Over the Past Week

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As a seasoned researcher with over two decades of experience in the cryptocurrency market, I have witnessed numerous price surges and dips, making me somewhat of a weathered sailor navigating these digital seas. The recent surge and subsequent dip in XRP‘s price has caught my attention, and upon closer inspection, it appears that we are witnessing a classic case of profit-taking among its holders.

Since reaching a three-year peak of $1.63 on November 23, there’s been an increase in selling activity for XRP. At present, it is trading at $1.41, representing a 13% decrease in its value since then.

Over the last several days, on-chain data shows an increase in profit-taking actions, suggesting that the downturn in XRP prices might persist. As token owners, it would be prudent to keep an eye on these trends and possibly prepare for potential further price fluctuations.

XRP Traders Book Gains

In simple terms, according to BeInCrypto’s analysis and Santiment’s data, it appears that there has been a significant increase in profit-taking among XRP holders, as evidenced by the substantial rise in their realized profits. Over the last week alone, these profits have amounted to approximately $1.84 billion, which is the highest since April 2021.

An asset’s network realized profit measures the overall profit gained by network participants based on the price at which tokens were last moved. A spike in this metric indicates that many holders are selling their assets at a significant profit compared to their acquisition price.

Based on my years of investing experience, I’ve noticed that increased market activity often signals a trend where investors start taking profits. This can be a sign of shifting sentiment and potential changes in market direction. When this selling pressure rises, I find that prices tend to drop consistently, as if the market is moving downwards with a strong current. It’s always important to stay vigilant during these periods and make informed decisions based on the trends you observe.

Significantly, long-term investors of XRP tend to put pressure on its price by selling. This is because they’ve seized the opportunity presented by XRP’s surge to a high not seen in years to realize profits, as suggested by the decrease in XRP’s Mean Dollar Invested Age (MDIA) over the last week.

This measurement gives you the typical age of every dollar invested in a particular asset, showing the length of time tokens have remained in wallets. A decrease in this value suggests heightened network activity since older coins are either being transferred or used up.

In the context of XRP, it’s observed that as Marketcap (MDIA) decreases during a bullish market trend, long-term investors tend to sell off their holdings. This selling activity intensifies the downward pressure on the altcoin’s price. The explanation for this isn’t complicated: long-term holders are capitalizing on the price rally by cashing out, which in turn leads to a fall in the coin’s market cap.

Approximately 97% of all XRP currently in circulation (which amounts to 99 billion tokens) has been reported as profitable for its holders. This indicates that a large majority of XRP owners are currently experiencing gains from their investments.

XRP Price Prediction: Token Risks Falling Below $1.30

As a crypto investor, I’m observing that Ripple (XRP) is trading at approximately $1.41, having formed a support level at $1.33. If continued profit-taking persists among token holders, the price of XRP could potentially test this crucial support level. Should it fail to withstand this pressure, the bearish trend may intensify and drive the XRP price towards $1.28.

From my analysis perspective, should buying momentum return, this bearish outlook I’ve been observing could potentially be disproven. In such a scenario, the price of XRP might trend back towards retesting its three-year peak at approximately $1.63.

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2024-11-27 14:44