XRP recently achieved a significant milestone, pushing its market cap to $164.47 billion, making it the third-largest cryptocurrency in the world, surpassing Tether (USDT).
The altcoin has seen a surge in price, with a notable rally driving the price higher. However, as XRP climbs, the potential for profit-taking increases, as observed in the last 24 hours.
XRP Holders Secure Their Profits
XRP’s supply in profit has recently crossed the 95% threshold, a critical level often seen as a signal of market tops. When supply exceeds this level, it usually results in a price reversal.
However, XRP has consistently reached this area over the past year and managed to maintain its price, moving sideways with occasional corrections. This historical behavior suggests that while the current rise could face resistance, it may not necessarily lead to a drastic reversal.
The overall macro momentum for XRP, however, raises concerns. In the last 24 hours alone, over 140 million XRP, valued at more than $387 million, have been sold to exchanges.
This large sell-off signals a lack of conviction among investors, as many appear to be booking profits.
With such a large volume of XRP entering exchanges, the market sentiment may weaken, as investors are securing gains. While this is typical in bull markets, the scale of selling in the last 24 hours could lead to a pullback, negatively impacting the price of XRP in the short term.
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Author: Aaryamann Shrivastava
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