- XRP price has surged nearly 27%, breaking key resistance levels, but a recent $1.47 billion influx of XRP onto exchanges signals possible short-term selling pressure.
- If profit-taking increases, a pullback below $2.30 could occur, though a break above $2.95 may continue the rally.
XRP has had an impressive week, surging nearly 27% thanks to renewed optimism around ETFs and strong buyer demand. The price recently broke a key resistance level at $2.72 and is flirting with the $3 milestone, sparking excitement among investors. However, recent on-chain data signals that this rally may face a short-term pause before resuming its upward trend.
Most XRP Holders Are in Profit, Raising Sell Pressure
Currently, over 98% of XRP holders are sitting on gains, meaning they bought XRP at lower prices and are now enjoying profits. While this is generally positive for market sentiment, it also increases the likelihood of some investors cashing out to lock in those profits.
This “supply in profit” metric highlights how much circulating XRP is worth more than when it was acquired. When nearly all holders are profitable, the risk of profit-taking rises, often creating short-term resistance to further price gains.
Exchange Balances Surge, Signaling Potential Selling
Another critical indicator is the sharp increase in XRP tokens held on exchanges. Exchange balances have climbed to 3.949 billion XRP—the highest in over four months. Since late June, more than 519 million XRP worth roughly $1.47 billion has moved onto exchanges.
This influx of tokens ready for trading often precedes large-scale selling. If buyers do not quickly absorb this supply, the resulting sell pressure could drag XRP’s price down from current levels.
Price Levels to Watch
After breaking the $2.72 resistance, XRP is now trading near $2.97, just below the important $3 mark. The next key resistance to watch is around $3.00. If sellers step in, immediate support levels to monitor are $2.95 and $2.72.
A deeper correction below $2.30 would challenge the broader bullish trend, potentially pushing XRP back into the trading range it held since late April. For this scenario to unfold, profit holders would need to increase their selling pressure significantly.
On the upside, if it breaks above the $3.00 resistance and exchange balances begin to decline, it may signal that the risk of a pullback is easing, paving the way for the next leg of the rally.
While XRP’s recent strength is promising, these on-chain indicators suggest traders should remain cautious of possible short-term price swings. Close attention to exchange inflows and profit-taking behavior will be crucial in anticipating XRP’s next price movements.
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