XRP has seen an astounding 424% increase over the past four weeks, bringing it closer to its all-time high (ATH) of $3.31. While this rise has generated excitement among investors, emerging bearish indicators suggest that the path to a new ATH may not be smooth.
Bearish Signals Emerge for XRP
XRP’s market sentiment shows signs of waning confidence. The Mean Coin Age indicator, which reflects how long tokens remain stationary in wallets, has been declining. This trend suggests that investors are increasingly moving their holdings rather than holding for the long term.
Typically, a rising Mean Coin Age points to strong HODLing behavior, reflecting confidence in the asset’s future. However, the current decline implies that more investors are trading XRP, possibly preparing to take profits. If this trend continues, it could indicate that XRP is nearing a price peak.
Additionally, over 98% of XRP’s total supply is currently in profit. Historically, when more than 95% of a supply is profitable, the market often approaches a saturation point. This could lead to increased selling pressure, further impacting XRP’s ability to sustain its uptrend.
XRP Price Prediction: Can It Hit a New ATH?
XRP is now just 25% away from reaching a new ATH above $3.31. Optimism remains high, but resistance at key levels could slow its progress. If bearish trends like declining Mean Coin Age and profit-taking continue, XRP might struggle to break through its ATH.
In a bearish scenario, XRP could experience a pullback, testing the critical support level at $2.00. If the token fails to hold this level, it may lose much of its recent gains.
On the other hand, sustained bullish momentum could propel XRP past its ATH, establishing a new price ceiling. For now, $2.00 serves as a critical buffer, and as long as the token holds above it, the possibility of hitting a new ATH remains strong.
Final Thoughts
XRP’s recent surge has captivated the crypto community, but bearish signals hint at potential hurdles ahead. Whether XRP reaches a new ATH or faces a pullback will depend on how these factors evolve in the coming days.
