XRP has experienced notable gains in recent times due to the conclusion of the long-standing legal battle between Ripple and the SEC. Following the settlement agreement where Ripple agreed to pay $50 million of the $125 million penalty initially imposed, this news has propelled XRP's price upwards. Although these positive developments have been beneficial, the increasing profits for short-term holders (STHs) could pose a risk to the altcoin's sustained recovery, potentially hindering its ability to surpass key resistance levels.
Addressing the bearish signals being sent by XRP investors, the MVRV Long Short difference, currently at a 31-month low, indicates a rise in profits for STHs. This suggests that these quick-to-sell holders may start securing profits, posing a relatively bearish outlook for the market. Should many STHs decide to sell off, XRP might struggle to break through crucial resistance levels, facing downward pressure as a result. Furthermore, the escalating profits for STHs could lead to increased speculative selling, particularly if there are short-term price fluctuations with XRP.
Analyzing XRP's overall momentum, there are conflicting signals. While the Ichimoku Cloud, a significant technical indicator, is displaying bearish signs, the candlesticks are approaching a potential breakout above the cloud. A successful breakout above the Ichimoku Cloud could signify a change in market sentiment, potentially laying the groundwork for XRP to challenge higher resistance thresholds.
Although XRP has seen an 8% uptick in the last 24 hours due in part to positive market sentiment and Ripple's settlement with the SEC, challenges lie ahead. XRP's price is currently at $2.29, with a notable resistance level at $2.38 that has proven difficult to surpass for the past seven months. If short-term holders start selling at current prices, XRP may face limitations in breaking through this resistance, leading to a trading range between $2.12 and $2.38.
To trigger a sustained rally, XRP needs to break above $2.38 and convert it into a support level. Achieving this breakthrough could signal a path to $2.56 and disrupt the current bearish-neutral outlook, instilling market confidence and potentially setting the stage for further long-term gains.