The price movement of XRP has been under pressure in recent weeks, struggling to break through the key resistance level of $2.73. Investors had hoped the altcoin would reach a new all-time high (ATH) after breaking this level, but the delay has led to an increase in profit-taking activity.
This hesitation and subsequent selling is shaking investor confidence, and many are choosing to secure gains at current price levels rather than wait for further upside.
XRP investors becoming increasingly pessimistic
Profit-taking is intensifying as XRP's price has failed to break through the $2.73 resistance, and many investors are opting to cash in on recent gains. This behavior is clearly evident in the sharp increase in realized profits, a key indicator of selling pressure.
Realized profits measure the gains obtained when a coin moves to a new address, and their increase shows that XRP holders are choosing to lock in profits rather than wait for additional price appreciation. This trend is a concerning signal for the short-term price outlook of XRP.
As more investors realize their gains, this creates a negative feedback loop that weakens the momentum of the altcoin. Profit-taking is a normal market response, but high levels of selling indicate a weakening of investor sentiment.
The broader macroeconomic momentum for XRP is not ideal. One of the key indicators of investor confidence, the Mean Coin Age (MCA), has been steadily declining over the past few weeks. This metric tracks the average age of circulating coins, and its decrease suggests that long-term holders are losing interest in holding XRP.
Despite the bullish momentum across the cryptocurrency market, XRP has failed to gain substantial upside, and this is impacting the overall market sentiment. The fact that XRP is not rallying in a similar fashion to the rest of the market is causing many to reconsider their positions. This weak macroeconomic momentum is further affecting the asset's price stability and investor confidence.
XRP Price Prediction: Finding a Breakthrough
The current price of XRP at $2.43 is facing resistance at $2.73, which is an important price level between the current XRP price and the all-time high of $3.31. The proximity of the coin price to this price range presents both opportunities and risks for investors.
Despite the upside potential, the bearish factors suggest that XRP could enter a correction within the $2.73 to $2.00 range. Macroeconomic conditions have dampened the market sentiment towards XRP, leading to a more cautious approach. Investors should monitor this range for further price direction.
For the bearish outlook to be invalidated, XRP needs to break above $2.73 and convert this resistance level into support. Such a move would open the path to retest the $3.31 ATH and signal a new bullish momentum. Until then, the price action of XRP remains in a state of limited upside momentum.
