XRP investors have realized a substantial $1.6 billion in profits over the past six weeks, as the token’s price stagnated. Frustration grew among traders due to the prolonged lack of price movement, leading many to sell off their holdings during this period. A total of nearly 695 million XRP tokens were sold, reflecting a typical profit-taking behavior seen in markets undergoing long consolidation phases.
Despite the surge in selling activity, long-term holders have continued to support the token’s price, preventing a drastic drop. On-chain metrics, such as the MVRV Long/Short Ratio, indicate that these investors are still in profit, which is helping to maintain stability in the market. Their persistence has proven vital in preventing a sharp decline in XRP’s value, even as short-term traders exit.
XRP’s price has faced difficulty breaking through key resistance levels, which has stifled its potential for growth. For weeks, the token has been trapped within a narrow price range, showing little to no upward movement. Without a shift in market sentiment, this consolidation pattern is likely to persist.
However, rising selling pressure poses a risk to XRP’s support level. If this level is breached, the market sentiment could shift from neutral to bearish, which could lead to further losses for investors. The continued presence of long-term holders remains crucial to maintaining the token’s stability.
In conclusion, while XRP faces headwinds from rising selling pressure and investor frustration, the support from long-term holders has prevented significant declines. If the selling trend intensifies or market sentiment shifts further, XRP could encounter a challenging market environment.
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