XRP Profit-Taking Shakes Investors Confidence
XRP price action has been under pressure in recent weeks as it struggled to break above the key resistance level at $2.73. Investors had been hoping for a break above this level to push the altcoin to new all-time highs (ATH), but the delay led to increased profit-taking activity.
This hesitation and subsequent sell-off shook investor confidence, with many choosing to take gains at current price levels rather than wait for further gains.
XRP investors are pessimistic
Profit taking intensifies XRP price fails Breaking above the $2.73 resistance, many investors chose to take advantage of the recent gains. This behavior is evident in spikes in realized profits, a key indicator of selling pressure.
The rise in realized profits, which measures gains made when tokens are transferred to new addresses, suggests XRP holders are choosing to lock in profits rather than wait for further price increases. This trend is a worrying sign for XRP’s short-term price outlook.
As more investors take profits, it creates a negative feedback loop that erodes altcoin momentum. While profit-taking is a normal market reaction, the heavy sell-off suggests investor sentiment is beginning to weaken.
The macro momentum for XRP is not ideal. One of the key indicators of investor confidence, the Average Coin Age (MCA) has been steadily declining over the past few weeks. This metric tracks the average age of coins in circulation, and its decline indicates that long-term holders are losing interest in holding XRP.
Despite bullish momentum in the broader cryptocurrency market, XRP failed to achieve significant gains, which is impacting the overall market sentiment. Although the market experienced a strong rally, XRP was unable to rebound in a similar manner, causing many to reconsider their positions. This weak macro momentum further affects asset price stability and investor confidence.
XRP Price Prediction: Looking for a Breakout
XRP current price The $2.43 price faces resistance at the $2.73 barrier, a key level between the altcoin and its all-time high (ATH) above $3.31. Approaching this hurdle creates both opportunity and risk for investors as the coin approaches a critical point in its price action.
Despite the upside potential, bearish factors suggest that XRP may continue to consolidate within the $2.73 to $2.00 range. Macroeconomic conditions have moderated market sentiment for XRP, causing it to move cautiously. Investors should keep a close eye on this range for further price direction.
To invalidate the bearish outlook, Ripple must A break above $2.73 will turn this resistance into support. This move would open the way for ATH to retest $3.31, signaling renewed bullish momentum. Prior to this, XRP’s price trend was still in a maintenance pattern, with limited upward momentum.
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