XRP has been stuck in a consolidation phase for the past two weeks, hindering its ability to reach a new all-time high.
Although the cryptocurrency is managing to stay above a crucial support level, it is struggling to gather the momentum needed for a breakout. A shift in investor sentiment could alter the current path.
XRP Investors Experience Setbacks
Recent data shows that XRP's transaction volume has been dominated by losses. With a new all-time high proving elusive, investors are starting to shift their positions, leading to losses for many XRP holders. This trend of losses over the past two weeks is affecting overall market sentiment.
If this trend persists, traders might start withdrawing from the market, reducing transaction volumes. A decrease in on-chain activity could have a negative impact on XRP's price, heightening the risk of prolonged consolidation or a potential drop below crucial support levels.
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The MVRV Long/Short Difference reveals that long-term holders are currently profiting from XRP's recent price movements. Despite short-term volatility, these investors are holding their positions, showcasing their resilience. Their sustained confidence is vital for market stability.
Should long-term holders maintain their stance, the likelihood of a significant price correction for XRP decreases. This behavior indicates trust in the cryptocurrency's long-term prospects and hints that XRP's upward momentum could continue under favorable market conditions.
XRP Price Forecast: Bullish Momentum Toward New Highs
Following a bounce off the $2.95 support level, XRP is on a micro uptrend. Despite a brief dip below this level, the cryptocurrency swiftly recovered and stayed above the trend line, reinforcing the bullish outlook.
Currently, XRP is less than 10% shy of surpassing the $3.40 mark to set a new all-time high. If the positive trend persists and long-term holders remain committed, XRP could break through this resistance and establish a fresh price pinnacle soon.
However, failing to hold the $2.95 support level upon a retest could lead to further price declines for XRP. A breach below this point would amplify bearish sentiment and might push XRP toward $2.73 or lower, potentially negating the bullish scenario.