The price of XRP has been steadily rising in recent weeks, but remains under an important barrier. Despite the increase, the Ripple token is facing difficulties as investor confidence remains weak.
Let's take a look at what's happening in the Ripple (XRP) market and what to expect from the cryptocurrency's price.
XRP holders are 'jumping ship'
This week, XRP faced massive sell-offs, with realized profits reaching a record level since early March. Approximately $470 million worth of XRP was sold in just 24 hours. This surge in selling is reminiscent of March when a slight price increase triggered sharp sell-offs.
The market's reaction to recent price changes shows that investors remain cautious. Historically, rapid price increases of XRP are followed by a wave of selling, leading to significant declines shortly after any rises.
Realized profits of XRP. Source: Glassnode
The behavior of these whales indicates uncertainty, hindering XRP from maintaining its recent achievements. This adds to the overall weak sentiment surrounding XRP's recovery.
Whale addresses holding XRP. Source: Santiment
XRP Forecast: A breakout is needed
Over the past month and a half, XRP has been in an upward trend, but now the token faces a serious challenge: a four-month downtrend line. Previous attempts to break through this barrier have been unsuccessful, and the price remains below this crucial resistance level.
At the time of writing, XRP is trading at $2.37, trying to hold at the support level of $2.38. Recent seller activity and a lack of strong support suggest that XRP may fall below the $2.27 level, potentially reaching $2.12. If selling continues, it would negate the upward trend and lead to further declines.
XRP Price Analysis. Source: TradingView
However, if Bitcoin can establish a new all-time high (ATH), a broader market rally may also boost XRP's momentum. The altcoin's target will be support at $2.56. Holding this level would negate the bearish scenario and possibly lead to stronger growth.