XRP's price has dropped by 4% in the last 24 hours, trading at $2.55. This decline is in line with the overall trend in the cryptocurrency market, which has seen a 2.2% decrease in total market capitalization, now at around $3.67 trillion.
The recent price drop can be attributed to profit-taking among XRP holders. Over the past 30 days, XRP has more than doubled in value, gaining over 10% since Ripple's announcement about the launch of RLUSD on December 16. This surge has led many token holders to realize gains. On December 17, XRP investors realized over $1.48 billion in profits, the second-highest daily realized profits of 2024. This trend is similar to what was observed on December 2 when holders capitalized on XRP's rise to seven-year highs of $2.90.
Despite the profit-taking, XRP has consolidated since December 2, with buying activity from large investors. Whales holding between 10 million to 1 billion XRP have accumulated an additional 800 million XRP, valued at nearly $2 billion, in the last 48 hours. This accumulation suggests that significant market players remain bullish even as the price faces downward pressure.
XRP's price has encountered resistance at the $2.60 mark since December 4. Technical analysis shows that the cryptocurrency is still following a bullish flag pattern on the daily timeframe, with support at $2.35. To maintain its upward trajectory, XRP needs to convert the resistance level at $2.60 into support. If successful, this could potentially lead to a rise above the multi-year high of $2.90. However, indicators such as the moving average convergence divergence (MACD) and the relative strength index (RSI) show signs of bearish momentum. The RSI has decreased from 68 to 66 in the past 24 hours, suggesting increasing selling pressure. If the sell-off continues, XRP risks losing the critical support level at $2.35, which would invalidate the bullish outlook and potentially lead to further consolidation.
Crypto trader Robert Mercer sees the current price level as a potential entry point, suggesting that the consolidation phase around the $2.50 support could be an opportunity for investors to accumulate more XRP. Mercer has set a target of $3.50, indicating belief in the cryptocurrency's potential for recovery and growth. The interplay between profit-taking and whale accumulation will be crucial in determining XRP's price trajectory. The ongoing developments surrounding Ripple and its products, such as RLUSD, will also play a significant role in shaping market sentiment and investor behavior. Given the volatility of the cryptocurrency landscape, investors are advised to conduct thorough research and remain vigilant in their trading strategies.
In summary, while XRP faces immediate challenges with price resistance and profit-taking, the underlying bullish sentiment from large holders and the potential for future growth remain key factors to watch in the coming days.