XRP has recently shown significant benefits promoted by the end of the long-standing Ripple-SEC lawsuit. After reaching a settlement with the SEC, Ripple agreed to pay $50 million, a penalty of initially $125 million.
This news helped raise the price of XRP. However, despite positive developments, rising profits for short-term holders (STH) could threaten a sustained recovery in Altcoin and prevent breakouts above key resistance levels.
XRP investors are sending bearish signals
The long, short difference in MVRV, currently at a low of 31 months, indicates an increase in profits for short-term holders. If this indicator is low, it suggests that STHS, which sells normally quickly, may book profits. This trend is relatively bearish for the market.
These holders are often sold at the first sign of profit, which could limit XRP’s ability to maintain its current upward trajectory. If many STH decide to cash out, XRP can break the main resistance level and struggle to face downward pressure. Furthermore, an increase in STH profits could create an environment where speculative sales increase, especially when XRP prices are faced with short-term fluctuations.
The overall momentum of the XRP shows a mixed signal. On the one hand, the main technical indicator, West Sea Cloud, currently shows signs of bearishness. This usually suggests that market sentiment is leaning towards a downtrend. However, the candlestick appears to be approaching a potential breakout above a one-sided cloud.
If a candlestick breaks normally above one cloud, it marks a change in market emotions. The confirmation of the resulting upward movement may provide the basis for XRP to challenge higher levels of resistance.
XRP prices should be breakout
XRP has risen 8% over the past 24 hours. This was partially rising due to wider market bullishness and Ripple’s settlement with the SEC. As a result of the settlement, Ripple will pay $50 million, the original $125 million penalty, with the remaining $75 million being returned. The news has raised the price of XRP, which is currently trading at $2.29.
However, XRP faces serious resistance at $2.38, at a level where it has struggled to infringe for over seven months. If short-term holders move to sell at current prices, XRP may be limited in their ability to break through this resistance. This will allow Altcoin to consolidate between $2.38 to $2.12, potentially preventing breakouts.
If XRP bounces back to support in violation of $2.38, it could lead to a more sustained rally. Passing this level could result in doors opening to rise to $2.56, negating the current bearish-neutral outlook. Such breakouts can show confidence in the market and pave the way for further profits in the long term.
Disclaimer
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