XRP has recently dropped from its all-time high (ATH) and is now stabilizing with a sideways price movement.
This altcoin is currently staying above the critical $3 support level, which is acting as a psychological level for investors. However, with increasing selling pressure, XRP may struggle to maintain this support line.
XRP Investors Selling
According to the net realized profit/loss indicator, XRP has seen sales worth $845 million in the last 24 hours. This is one of the highest single selling volumes this month. This high selling volume suggests that many XRP investors are still uncertain about the coin's stability.
XRP's price fluctuations reflect investors' concerns about the coin's short-term trajectory. The uncertainty is driving many to secure profits, especially as the altcoin struggles to push back to its ATH of $3.66.
XRP's macro momentum is significantly influenced by the increase in liveliness, which tracks long-term holders' (LTH) movements. Currently, liveliness is at a four-month high, indicating that many long-term holders are selling XRP. This transition from accumulation to distribution could negatively impact the price. LTHs typically have a substantial influence on XRP's value.
The increase in liveliness suggests that XRP holders are taking advantage of recent profits, which could lead to additional selling pressure. If this trend continues, XRP could be threatened at its $3.00 psychological support line.
XRP Price Needs to Hold
XRP is currently trading at $3.13, just above the $3.00 support line. While this support line has not been frequently tested, it remains crucial for the altcoin. If XRP fails to maintain this level, additional downward pressure could push it below $3.00, potentially targeting $2.65.
Considering the current market dynamics and investor selling pressure, XRP's price is likely to face additional downward momentum. Breaking the $3.00 support line could trigger further selling pressure.
However, if the market shows bullish signals and investor sentiment changes, XRP could regain its bullish trend. Breaking the $3.41 resistance line could signal a potential return to upward momentum, bringing the coin closer to its $3.66 ATH.
