XRP Faces Downward Pressure as $1.84 Billion Cashed Out
XRP has seen a surge in sales activity since climbing to a three-year high of $1.63 on November 23. Currently, the altcoin is trading at $1.41, and the price has since fallen by 13%.
On-chain data shows a significant increase in profit-taking activity over the past few days. This highlights that XRP price may continue to fall. What should token holders pay attention to?
XRP Trader Book Gains
BeInCrypto’s evaluation of XRP on-chain performance shows Profit-taking activity surges Among its holders, this is reflected in the surge in realized profits. According to data from Santiment, XRP’s profits totaled $1.84 billion in the past seven days, the highest level since April 2021.
An asset’s network realized profit measures the overall profit made by network participants based on the token’s last price move. The surge in this indicator indicates that many holders are selling assets at a substantial profit compared to the purchase price.
This usually happens during periods of active market activity. It signals a profit-taking trend and hints at a potential change in sentiment. The downward price trend continues as selling pressure builds.
especially, Contributions from long-term XRP holders Put downward pressure on its price. They have capitalized on the token’s rise to multi-year highs, as evidenced by the decline in XRP’s average dollar investment age (MDIA) over the past week.
This metric tracks the average age of all dollars invested in an asset, reflecting how long a coin has been held in a wallet. When it drops, it indicates increased network activity because older coins are being moved or spent.
As is the case with XRP, when MDIA declines during price increases, long-term holders actively sell their assets, putting bearish pressure on the altcoin price. The reasons are not far-fetched.
The ratio of XRP supply to profits recently exceeded 90%. This means that most XRP holders are now making profits. As of this writing, nearly 97% of the token’s 99 billion circulating supply is in the black.
XRP Price Prediction: Token Risks Falling Below $1.30
XRP currently trading $1.41, with upper support at $1.33. Continued profit-taking activity by token holders will pull the price of XRP to test this support level. If it fails to hold, the downward trend will intensify and XRP price decline may extend to $1.28.
On the other hand, if buying activity resumes, this bearish forecast will become invalid. This may push XRP price returns to three-year high of $1.63.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
