XRP recently hit a historical peak, but caution is advised amidst concerning signals like massive sell-offs, profit-taking, and key support level breaches. Is a sharp correction on the horizon ? Find out more in this detailed analysis.
Recent weeks have been marked by a strong surge in XRP’s price, which reached a new all-time high of $3.66. However, this rally seems to be losing momentum as new investors withdraw from the market. Indeed, the number of new XRP wallets has dropped dramatically, falling from 11,058 to just 3,930 within 48 hours.
This sudden decline in interest from market participants, who had previously contributed to the price increase, is a concerning signal. Generally, this type of behavior occurs after a price peak, with investors waiting for clearer signals before engaging again. With the loss of this crucial support from newcomers, XRP’s bullish momentum appears to be waning.
While new investors are retreating, another indicator is drawing attention : the net position change of HODLers. Over the past two days, the chart shows red bars. This indicates that XRP’s long-term holders have entered a selling phase. This is the first time in over a month that these long-term investors, often guarantors of price stability, have changed their behavior.
This reversal is concerning, as sales by HODLers typically reflect either a loss of confidence in continued price increases or an opportunity to lock in profits. Their decision to lighten their positions could therefore intensify the downward pressure on XRP.
Currently, XRP is trading around $3.50, just 4% below its all-time high. However, technical signals suggest challenges ahead. If the divestment movement continues, the altcoin could lose the key support level of $3.38. A break below this level would pave the way for further losses, with the price potentially falling back to $3.00, erasing recent gains.
Conversely, if demand rebounds, XRP could stabilize above $3.38 and attempt once again to break through $3.66. A successful breakthrough would propel the altcoin to $3.80, marking a new all-time high and invalidating correction fears.
XRP is currently at a crossroads. While the price has recently reached unprecedented heights, technical signals and evolving investor behavior suggest a risk of a short-term trend reversal. Caution is advised for XRP holders, who should closely monitor market developments in the coming weeks.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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