XRP’s price has been stuck in a six-month-long battle to break above the 78.6% Fibonacci retracement level, facing resistance since March. Despite multiple attempts, the altcoin has struggled to sustain a breakout, keeping it in a bearish zone. However, market sentiment shifts are giving hope for a potential price rise in the coming months.
Recent data indicates that long-term holders (LTHs) are showing a positive outlook, with the MVRV (Market Value to Realized Value) Long/Short Difference indicator standing at 3.1%. This suggests that LTHs, who typically hold onto their tokens for extended periods, are in profit. According to analysts, this is a bullish sign for XRP, as the absence of short-term traders reduces the risk of selling pressure. “With long-term holders in the profit zone, the possibility of them holding onto their XRP tokens increases,” stated one market expert.
Yet, the picture remains complicated. Profit-taking behavior has surged, particularly among investors who are cashing in on recent price spikes. This is putting downward pressure on XRP’s price. “A surge in profit-taking often counters bullish sentiment,” explained another analyst. If long-term holders delay further sales, this could help balance the market and potentially support another rally.
Mixed signals continue to dominate XRP’s macro momentum. The 61.8% Fibonacci level offers strong support, but the $0.65 barrier remains a significant challenge. If broader market conditions remain favorable, XRP could break through the 78.6% resistance in Q4. However, if the resistance holds, XRP might consolidate below $0.65, potentially stalling its bullish outlook for the near future.
Source: XRP Price’s 6-Month Struggle May Finally End in Q4 2024