Recently, XRP reached an important milestone, pushing its market capitalization to $164.47 billion, becoming the third largest cryptocurrency in the world, surpassing Tether (USDT).
This altcoin has seen a strong price surge, with a significant rally pushing the price higher. However, as XRP rises, the potential for profit-taking also increases, as seen in the last 24 hours.
XRP Holders Secure Their Profits
The supply of XRP that is profitable recently exceeded 95%, a critical level often regarded as a market peak signal. When the supply exceeds this level, prices often reverse.
However, XRP has consistently reached this threshold over the past year and has maintained its price, moving sideways with occasional corrections. This historical trend suggests that while the current upward momentum may face resistance, it may not necessarily lead to a strong reversal.
However, the overall macro growth momentum of XRP raises concerns. In just the last 24 hours, over 140 million XRP, worth more than $387 million, has been sold to exchanges. This large sell-off indicates a lack of trust from investors, as many seem to be taking profits.
With a large volume of XRP flowing into exchanges, market sentiment may weaken, as investors seek profits. While this is normal in a bull market, the scale of the sell-off in the last 24 hours may lead to a downward correction, negatively impacting XRP's price in the short term.
XRP Price May Face Some Troubles
The price of XRP has increased by 9% in the last 24 hours, peaking at 16% during high trading sessions during the day. Despite achieving strong performance, XRP is still slightly away from the $3.00 mark. This price surge has attracted considerable attention, but the price is facing challenges as it approaches significant resistance levels.
With a price of $2.78, XRP may find it difficult to reach the $3.00 level due to the factors discussed above. If selling pressure increases, the price is likely to drop below $2.65, with the possibility of continuing to decrease to $2.35. This could lead to a broader market correction, wiping out recent gains and hindering further price growth.
However, if the overall market conditions remain optimistic and if "whales" step in to absorb the sold supply, XRP could rise to $3.00. Breaking through this significant resistance level would mark a five-month high and could pave the way for further rallies. The ability to overcome this level will depend on continued investor confidence and market stability.