The breakout of XRP quickly 'cooled off' when profit-taking pressure appeared early. After rising by 18.7% in a day, the price lost nearly half of its gains and closed the session around 1.53 USD, indicating that the buying momentum was not strong enough to maintain the trend.
Instead of accumulating more, many holders take the opportunity to sell whenever the price rises, increasing the amount of tokens on the exchange. The overwhelming selling pressure causes the supply and demand balance to tilt towards the sellers, turning the upward movements into selling opportunities.
If buying power does not improve soon, XRP will struggle to form a sustainable upward trend and may continue to fluctuate under resistance pressure.
The MVRV Long/Short Difference index shows that most of the unrealized profits are concentrated among short-term investors, rather than long-term holders. This is a negative signal, as profits belonging to the 'swing' cash flow often lead to early selling pressure in the market.
With the characteristic of reacting quickly to price fluctuations, this group tends to take profits as soon as expectations are met, creating a large supply and disrupting the upward momentum. This makes it difficult for recovery phases to be sustainably maintained and easily weakened after a short period.
As long as profits remain concentrated among short-term investors, XRP will continue to face profit-taking pressure, making it difficult for the upward trend to be sustainable.
XRP just experienced a strong volatility session: soaring 18.7% and then narrowing to 9%, leaving a long candle shadow – a sign that profit-taking pressure appeared early and buyers were not decisive enough.
For now, the 1.51 USD mark plays a crucial support role as the price fluctuates around 1.53 USD. Meanwhile, the 1.62 USD area is the nearest resistance that could hinder the recovery momentum. If selling pressure continues, the price may retreat to 1.36 USD.
Conversely, when supply weakens and cash flow returns, XRP could break through 1.62 USD to expand the upward trend to 1.76 USD, thereby strengthening the recovery trend.