XRP’s price recovery is under pressure with significant resistance at $2.80, following a remarkable 240% increase in profit-taking that indicates investor hesitance.

Key Insights:

• XRP rose by 12% to $2.53 after U.S. President Donald Trump announced a $2,000 stimulus check for many Americans.
• Ongoing profit-taking among long-term holders (those retaining XRP for over 155 days) could impede recovery efforts.
• The price faces formidable resistance at $2.60-$2.80, potentially hindering further gains.

XRP (XRP)’s value climbed significantly on Monday, reacting to announcements from the U.S. government, but further upward momentum may be curtailed by profit realization and substantial overhead resistance.

Surge in Profit Realization: 240%

The potential for XRP to sustain its gains is now uncertain as long-term holders increasingly engage in profit-taking. According to Glassnode, this recent wave of selling stands out as historically, such profit-taking aligns with price surges.

“This divergence underscores distribution into weakness, not strength.”

Previously, long-term holders secured substantial gains during price rallies, but with profit-taking reaching $220 million per day, the risk of downward momentum increases. The price has fallen 25%, dipping to $2.30 from a high of $3.09 during this period.

XRP Realized Profit XRP: Realized profit by profit margin. Source: Glassnode

Intensified selling by whales, those holding large quantities of XRP, has also been evident as these entities let go of substantial amounts in a short timeframe.

Resistance Impeding Recovery

The XRP/USD price is currently trending downward within a descending parallel channel. It is approaching the resistance threshold at $2.60, where the 50-day and 100-day simple moving averages converge.

For bulls, breaching this resistance might pave the way towards a possible rally towards $3 and potentially higher.

XRP/USD Daily Chart Source: Cointelegraph/TradingView

The distribution heatmap from Glassnode suggests a considerable supply pressure at $2.80, indicating that this could pose a significant barrier to recovery efforts.

“Once this resistance is cleared, the pathway to ATH begins.”

This report does not constitute financial advice. Investors should research before making any trading decisions.