What to Know:
- Ripple co-founder Chris Larsen has realized substantial profits from XRP sales since 2018.
- XRP needs to overcome the $2.60 mark to reverse its current downtrend.
- Key technical indicators suggest a potential bullish reversal for XRP.
XRP’s price action is under scrutiny as Ripple’s co-founder, Chris Larsen, has reportedly realized significant profits from his XRP holdings since 2018. This activity has sparked discussions among investors about potential impacts on XRP’s price recovery. The focus remains on key price levels and market indicators that could signal a shift in momentum.
Larsen’s realized profits from XRP sales have reached $764.2 million since January 2018, according to CryptoQuant data. While some view this as standard profit-taking, others suggest it contributes to downward pressure on XRP, especially near local highs. Regardless, Larsen’s remaining XRP holdings could continue to influence market dynamics.
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Technically, XRP needs to reclaim the 200-day simple moving average (SMA) at $2.60 to aim for higher targets above $3.00. Overcoming this level has historically preceded notable recoveries in XRP’s price. Subsequent resistance levels to watch include the 50-day SMA at $2.74-$2.80 and the 100-day SMA at $2.94, with a break above the latter potentially confirming the end of the downtrend.
Despite concerns, a bullish divergence between falling prices and a rising Relative Strength Index (RSI) hints at potential weakness in the current downtrend. This divergence, combined with a possible bullish moving average convergence divergence (MACD) crossover, could inject positive momentum into XRP’s price. Overcoming the 20-day exponential moving average (EMA) at $2.55 would further validate a potential comeback.
XRP faces a critical juncture as it navigates profit-taking activities and key technical resistance levels. Bullish signals from technical indicators suggest a potential shift in momentum, warranting close observation by traders and investors. Should XRP overcome these hurdles, it could pave the way for a more sustained recovery.
Source: Original article
