XRP Is Just 4% Away From All-Time-High , But $1.7 Billion Selloff Risks Loom

XRP is making waves in the cryptocurrency market, nearly reaching a new All-Time-High (ATH) after a significant price increase. Currently, this altcoin is trading at $3.25, just 4.69% away from its previous ATH of $3.40.

However, while the price continues to rise, XRP faces an increasing risk of sell-off as investors react to recent price fluctuations.

XRP Investors Shift to Selling

Over the past ten days, XRP investors have sold a large number of tokens, with over 540 million XRP, valued at approximately $1.74 billion. Crossing the $3.00 mark may have triggered this sell-off, with many investors fearing a price drop and choosing to take profits.

This fear-driven sell-off could cause a decline in price momentum, which might hinder XRP's potential to reach new heights. As investors consider the risks of further price fluctuations, sentiment around XRP is becoming more cautious. The question remains whether this profit-taking behavior will continue or if strong price support can prevent further downward pressure.

The overall macro momentum for XRP remains fragile. The net position change of HODLers is currently at its lowest in six weeks, indicating that long-term investors (LTHs) have slowed down in accumulating XRP tokens.

These LTHs have a significant impact on XRP's price movements, and their behavior could be a crucial factor in determining whether the price continues to rise or fall. If these holders become more pessimistic, it could shift the buy and sell balance in the market, potentially exerting additional downward pressure on XRP.

XRP Price Shows Signs of New ATH

XRP is currently trading at $3.24, just slightly below its ATH of $3.40. The recent 35% price increase over the past week has attracted significant attention, with many anticipating the long-awaited $3.40 mark. However, the recent sell-off could impede further price momentum, potentially pushing XRP back to the $3.00 level if selling pressure increases.

If selling continues and more profit-taking occurs, XRP may struggle to break through the resistance level at $3.40. The next key support for this altcoin is $3.00, and if it fails to maintain this level, the price could drop further, potentially down to $2.65.

However, if the broader market conditions remain optimistic and new investors continue to show interest in XRP, the cryptocurrency could continue to rise. If XRP can break through the $3.40 resistance level, it could advance further to $3.80, establishing a new ATH and solidifying its position in the market.