Xrp Profit-taking Signals ‘weakness’: Will It Delay Recovery To $3?

XRP price recovery could be hindered by stiff resistance at $2.80, as a recent 240% jump in profit-taking highlights investor caution.

Increased profit-taking by long-term holders could slow the recovery.

XRP price resistance at $2.60-$2.80 will be a formidable obstacle.

XRP (XRP) price surged 12% on Monday following US President Donald Trump’s announcement of a $2,000 stimulus check for most Americans. Now trading near $2.53, the continuation of the rally to $3 could be curtailed by increased profit-realization and stiff overhead resistance.

XRP’s potential to stage a sustained rally this week is in question as long-term holders (LTHs) — those who have held XRP for more than 155 days  — ramp up profit-taking.

Glassnode noted that previous profit realization waves actually aligned with price rallies as LTHs secured significant gains.

“Unlike previous profit realization waves that aligned with rallies, profit realization volume (7D-SMA) surged by 240%,  from $65 million per day to $220 million per day since late September,” Glassnode wrote.

Related: What happens if ETH stops being deflationary and XRP becomes the global liquidity benchmark?

This profit realization coincided with a 25% decline in the XRP price, from $3.09 to $2.30.

This aligns with persistence selling by whales, who intensified their selling activity as the XRP price fell below $3.

Source: CoinTelegraph