$XRP XRP Hits All-Time High, But Is a Reversal Looming?
Ripple’s XRP soared to a new all-time high of 3.41$$ on January 16, sparking excitement in the market. However, this rally has quickly been followed by a surge in profit-taking, threatening to undo the recent gains.
On January 20, XRP saw an outflow of 74 million from its spot markets—its largest one-day outflow in 30 days. This suggests that investors are selling or withdrawing their holdings, which can signal a lack of confidence or a desire to lock in profits. When such outflows occur, the price often faces downward pressure, creating a potential for further selling and a deeper price decline.
XRP's daily trading volume also dropped by 26%, despite a modest 2% price increase over the last 24 hours. This negative divergence, where the price rises without accompanying volume, suggests weakening momentum and the possibility of a price reversal or consolidation.
At the time of writing, XRP is trading at 3.19$, and if selloffs persist, it could dip toward support at 2.45$. However, should the current uptrend hold, the token could retest its all-time high or push higher.
Material prepared by the exchange: coytx.com
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