XRP faces $470 million in sell-offs as investor confidence weakens, with cryptocurrency whales contributing to the selling pressure. The cryptocurrency is struggling to break the key resistance level of $2.56, amid fears of a pullback to $2.12. Despite the selling pressure, a broader market rally driven by Bitcoin's new ATH could reignite XRP's momentum, leading to potential growth.
XRP has been experiencing a steady price increase over the past few weeks; however, it remains trapped under a crucial barrier. Despite the price increase, XRP faces challenges as investor confidence seems to be wavering.
A key resistance level is proving difficult to overcome, and market sentiment is mixed as some investors begin to secure profits.
XRP saw massive sell-offs this week, with realized gains reaching their highest levels since early March. In just 24 hours, approximately $470 million in XRP was sold. This surge in sales reflects a pattern seen earlier in March of this year when a slight price increase triggered a massive sell-off.
The market's reaction to recent price changes indicates that investors remain cautious. Historically, these sell-offs follow whenever XRP has seen rapid price increases. This behavior has led to significant declines shortly after any upward movement.
Whales are also contributing to the uncertain market momentum. Addresses holding between 100,000 and 1 million XRP collectively sold 60 million XRP, valued at $142 million, in just one day.
This large-scale sell-off reflects the hesitation among major investors who are seemingly securing their profits at current price levels.
The behavior of these whales suggests that their support for the price is uncertain, further complicating XRP's ability to maintain its recent gains. This adds to the overall weak sentiment surrounding XRP's recovery.
XRP has been on an upward trend for the past month and a half, but now faces a critical challenge: the four-month downtrend line. Previous attempts to break this downtrend have failed, and the price remains below this crucial resistance level.
Although XRP's recent price action shows promise of recovery, breaking the downtrend remains a significant obstacle.
XRP is trading at $2.37, struggling to secure $2.38 as a support level. The latest selling activity and the lack of strong support suggest that XRP could fall below the support level of $2.27, potentially reaching $2.12.