Recently, XRP has been experiencing significant selling pressure. This may prolong the downward trend of Ripple, which has been ongoing for several months.

Despite Ripple's previous successes, investors now seem to be actively taking profits. This may lead to a correction in XRP's price and stall the altcoin's recovery.

Ripple investors are eager to sell.

Last week, Ripple reserves on exchanges surged sharply. More than 17 billion XRP tokens (over $40.2 billion) were sent to Binance in just seven days. This indicates that investors are either taking profits or exiting at break-even after the recent price surge. The spike in sales resembles a similar event in February 2024, which was soon followed by a decline in XRP.

Such large-scale selling indicates market caution. Holders do not want to take risks, fearing potential drops. Profit-taking reflects investors' indecision. This makes a short-term price correction likely, as supply exceeds demand.

The MACD technical indicator also indicates a weakening bullish momentum. A reversal will be confirmed if the MACD line crosses the signal line (red) from top to bottom, signaling a bearish crossover. Such a pattern often precedes an increase in selling activity.

The current MACD histogram shows a decrease in green bars, warning of a weakening bull trend. If a crossover occurs soon, XRP may face increased bearish pressure. This could lead to a price drop and deepen the downward trend.

The price of XRP is facing a downward trend.

The price of Ripple is currently below the descending trend line. Its age is almost four months. This signals a possible continuation of the decline. Such technical resistance poses a significant obstacle to any short-term recovery.

If the token does not hold above the support level of $2.38, a drop to $2.12 is possible. Further decline may bring the price down to $2.02. A break below $2.02 would accelerate losses, potentially sending XRP to $1.94 or lower. This would be a significant blow to investors.

If the price bounces off $2.12 and turns the $2.27 level into support, bullish momentum may resume. In this case, Ripple may test resistance at $2.56. Breaking through this barrier would negate the bearish scenario and end the prolonged decline.

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