On January 0.68, the price of XRP temporarily dropped below $1, marking the first decline in recent times.
Legal Victory
In mid-XNUMX against the SEC. Analysis of on-chain activity data shows that as of Monday, long-term holders of the chain
XRP
have started widespread selling.
Following a long-awaited victory in the ongoing legal battle with the SEC, XRP reached a high of $0.84, its highest value in a year. However, over the past two weeks, the price seems to have stalled around $0.70, causing long-term investors to question further upside potential.
Around January 28, the increasing selling pressure from long-term holders became evident, as shown by data from Satniment.
Age required
“. The metric shows a sharp increase in the age consumed of XRP, rising from $9.471 billion on January 22 to $0.70 billion on January 3, subsequently triggering a XNUMX% price pullback, falling below the $1 mark.
The chart also shows further jumps to $2.31 billion and $3.1 billion on January 437 and January 1, respectively. This metric measures real-time changes in trading activity of long-term investors, taking into account the amount of tokens traded recently and the time since the last change.
The continued surge of this metric suggests that a large amount of tokens held by long-term holders have been transferred in recent days, which could lead to a long-term decline in XRP prices if there is not enough market demand.
Another concerning sign is the decrease in trading volume on the XRP Ledger blockchain network after the legal victory. Following an active development, trading activity has significantly decreased, reaching only 2.77 billion XRP as of January 1.21, compared to XNUMX billion on January XNUMX.
With long-term holders continuing to exit positions, this further reinforces the bearish outlook. With selling pressure and network activity declining, XRP may struggle to maintain its current high prices due to insufficient demand.
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Given the current situation, the key support level for XRP is around $0.65. If long-term holders continue to sell at the current pace, prices could drop to $0.60. However, the initial support level may be around $0.65, and if this level drops by 30%, investors who purchased XRP in the past 5 days may seek to reduce losses.
On the positive side, if XRP can break through the resistance level of $0.75, it may regain momentum, although this scenario seems unlikely considering the current level of trading activity.
In conclusion, the recent decline in XRP prices and the continued selling by long-term holders indicate a bearish outlook for the digital asset. The key support level at $0.65 is crucial, and a break below this support could lead to further declines towards $0.60. On the other hand, a breakthrough of the resistance level at $0.75 may signal a potential recovery, but uncertainty remains due to current market conditions.