XRP aims to achieve a new all-time high (ATH) amid its ongoing price volatility. The cryptocurrency has faced challenges in maintaining upward momentum, repeatedly testing the crucial $2.95 support level.
While uncertainty persists due to whale selling, long-term holders (LTHs) are actively working to prevent significant price declines.
Large whale addresses holding between 10 million and 100 million XRP recently offloaded around 160 million tokens in a single day, amounting to nearly $500 million. This reflects growing concerns among major holders regarding XRP's struggle to sustain a strong uptrend. Despite some whales opting to take profits, there are indications that they are now re-acquiring XRP, signaling renewed confidence in the asset's long-term viability. This trend may provide the necessary backing for XRP to reclaim key resistance levels and make another attempt at reaching its ATH.
On a broader scale, XRP's macro momentum appears robust, as evidenced by the highly positive MVRV Long/Short Difference indicator. This signals that long-term holders are currently profitable, reaffirming their dedication to the cryptocurrency. Historically, LTHs have played a vital role in stabilizing prices, minimizing the likelihood of sharp sell-offs.
With steadfast long-term holders refraining from selling, XRP is well-positioned to maintain its current levels. The presence of strong hands in the market suggests that XRP could sustain its upward trajectory, assuming overall market conditions remain favorable.
As of the latest data, XRP is trading at $3.10, above the critical $2.95 support level. Despite being tested twice in the past week, defending this level could pave the way for a potential rally.
While reclaiming the $3.40 ATH may pose challenges, the possibility of whales repurchasing XRP they previously sold could enhance the cryptocurrency's rally potential. This accumulation could propel XRP past $3.40, marking a significant milestone.
On the flip side, losing the $2.95 support prior to a rally could alter investor sentiment towards bearish territory. In such a scenario, increased selling pressure might drive XRP towards $2.73 or lower, potentially invalidating the current bullish-neutral outlook and exposing XRP to further downside risk.