- XRP has remained above $0.57 despite traders taking $8.36 million in profits, raising concerns about potential downward pressure.
- On-chain metrics show mixed signals, with increased active addresses suggesting gains but continued profit-taking posing a risk of further declines.
Ripple (XRP) has managed to stay resilient above the critical support level of $0.57, even as traders continue to take significant profits. According to data from Santiment, Ripple traders have pocketed $8.36 million in profits on Thursday alone, raising concerns about potential downward pressure on the cryptocurrency.
Ripple Traders Cash In
The ongoing profit-taking trend among XRP traders has been consistent over the past two weeks, with the latest figures indicating $8.36 million in realized profits on Thursday. Typically, such profit-taking would exert selling pressure on the asset, as large volumes of XRP are transferred to exchange wallets for liquidation. This scenario often leads to a decline in the asset’s price.
However, XRP has defied the odds by holding steady above $0.57, posting a modest gain of nearly 1% on the day. This price stability comes despite the potential for increased selling pressure, indicating that XRP has found strong support at this level.
Mixed Signals from On-Chain Metrics
On-chain data presents a mixed outlook for XRP’s price movement. One of the positive indicators is the significant increase in active XRP addresses. Since August 25, the number of active addresses has surged by nearly 30%, reaching close to 20,000 at the time of writing. This uptick in activity typically signals potential gains, as more users engage with the network.
However, the simultaneous profit-taking raises concerns about a possible price decline. If the trend of large-scale profit-taking continues, XRP could experience a slip below its current support level.
Technical Analysis: A Cautious Outlook
From a technical perspective, XRP remains in a multi-month downward trend, with the potential for further declines. The Relative Strength Index (RSI) on the daily chart reads 47.76, which is below the neutral level, suggesting that XRP may still be vulnerable to bearish pressure.
If XRP fails to hold above $0.57, the altcoin could face a decline of up to 9.23%, potentially sweeping liquidity at $0.5194. However, a daily close above $0.60 could invalidate this bearish scenario, paving the way for a rally toward $0.66. This level represents the 50% Fibonacci retracement of the decline from the July 13 peak of $0.9380 to the July 5 low of $0.3823.
As XRP navigates these mixed signals, traders and investors will be closely watching whether the cryptocurrency can maintain its current support and potentially break out of its downward trend.
