XRP Profit-Taking Divergence Could Delay the Recovery Efforts by the Bulls

Main takeaways:

• XRP price rose 12% to $2.53 following Trump’s stimulus news.

• Increased profit taking by long-term bondholders could slow the recovery.

• XRP price resistance at $2.60 to $2.80 will be a massive hurdle.

The price of XRP (XRP) rose 12% on Monday after US President Donald Trump announced a $2,000 stimulus check for most Americans. It is now trading near $2.53, and a continuation of the rally to $3 may be capped by increased profit taking and stiff overall resistance.

XRP profits jump 240%

XRP’s ability to achieve a sustained rally this week is in doubt as XRP’s long-term holders (LTHs) — those who have held XRP for more than 155 days — ramp up profit taking.

Vitreous node male Previous profit making waves are actually in line with price rallies as LTHs have made significant gains.

“Unlike previous monetization waves that coincided with rallies, monetization volume (7D-SMA) has increased by 240%, from $65 million per day to $220 million per day since late September,” Glassnode wrote.

Related to: What happens if ETH stops deflating and XRP becomes a global liquidity standard?

This profit coincided with a 25% drop in the price of XRP, from $3.09 to $2.30.

“This difference emphasizes the distribution to weakness, not strength.”

This is in line with continued selling by whales, who have intensified selling activity as the price of XRP falls below $3.

Santiment’s supply distribution metric indicates that whales holding between 1 million and 10 million XRP tokens have offloaded an additional 500,000 tokens in the past 48 hours alone.

These entities now hold about 6.23 billion XRP, down from about 7 billion at the beginning of September.

However, outflows from whale wallets declined after a $650 million sell-off, indicating a potential bottom forming for XRP.

This could boost the price of XRP in the coming weeks, especially when combined with rising risk sentiment, stemming from the potential US government reopening this week.

XRP price is facing heavy resistance at $2.80

The XRP/USD pair is in a downtrend, oscillating in a descending parallel channel, as shown in the chart below.

The price is retesting the resistance level at $2.60, which is the area where the 50-day simple moving average (SMA) and 100-day SMA meet.

A break above this barrier would increase the chances of a rally towards the upper border of the descending channel at $2.80 (100-day simple moving average).

Bulls will have to overcome this resistance at $3 and later reach a seven-year high of $3.66.

The Glassnode distribution heatmap indicates that a large pool of supply is centered around $2.80 (100-day SMA), where approximately 1.86 billion XRP has been acquired, which could hamper any recovery efforts.

“Next stop for XRP is breaking resistance at $2.70” He said ChartNerd technical analyst in a post on X, adding:

“Once this resistance is removed, the path to ATH begins.”

As Cointelegraph reported, a rise in XRP above the 50-day simple moving average ($2.63) and subsequently to the downtrend line at $2.80 would signal demand at lower levels, facilitating a recovery to the psychological $3 mark.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.