XRP recently hit a new all-time high before entering the period of landscape integration. Cryptocurrency has struggled to break past resistance, but it has also managed to avoid major fixes.
However, this balance may not last very long as investors’ behavior shows a change in momentum.
XRP investors aren’t confident
Investors have started selling large quantities of XRP, suggesting that they will lose confidence. Over the past week, Exchange Wallets have seen nearly 450 million XRP influx. This was worth more than $2.81 billion. This surge in supply shows that holders are moving to sell their assets. This is usually a bearish indicator of the market cycle.
Rapid profit booking appears to be driven by concerns that XRP has peaked in the short term. As investors move to secure profits, pressure on XRP prices rises. Continuing increases in sales can lead to lower levels of immediate support and making recovery more difficult.
On-chain data further confirms bearish feelings. Liveliness, a metric used to track the behavior of long-term holders (LTHs), is currently 3 months high. This suggests that LTHS, normally known for their convictions and market influence, is currently selling XRP.
Behavioral change is a strong indicator of potential downward pressure.
Historically, the rise in vibrancy precedes market revisions. Because lths owns a large portion of the supply, their decisions have a significant impact on price trends. The increase in vibrancy reflects a broader shift in market outlook, consistent with the recent surge in supply exchanges and an overall decline in bullish sentiment.
Can XRP prices form another as?
XRP is currently trading at $3.48, just 4.8% off its all-time high. Despite its proximity, Altcoin has shown signs of debilitating and is sticking to a support level of $3.38. Without updating your purchase, this support may not last much.
If investors continue to sell, XRP could fall at $3.38 and test support for $3.00. A drop to this level erases recent profits and confirms a short-term bearish reversal. A $3.00 loss could indicate a longer integration stage or a deeper correction.
However, XRP could quickly rebound as market participants absorb the supply sold and recover demand. In this scenario, Altcoin is violating $3.66, violating $3.80 and aiming for $4.00. Such a move could negate the bearish outlook and XRP prices could form a new ATH.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
