- Glassnode data shows XRP long-term holders spiked their daily spending by 580% to $260 million.
- This massive profit-taking from veteran holders pressured the price, but the crucial $2.50 support level is holding firm.
- Analysts note this market conflict, where new demand absorbs the sell-off, mirrors XRP’s 2017 breakout pattern.
XRP’s price is facing renewed selling pressure, creating a conflict in market sentiment. The token’s value has declined 27% since early August, dropping from $3.30 to $2.40. According to Glassnode, this drop coincides with a 580% surge in daily spending from long-term holders (pre-November 2024).
This cohort has increased its profit-taking from $38 million to $260 million per day. While this distribution adds downward pressure, technical indicators suggest a major upward shift may be forming if key support holds.
Why Are Veteran Holders Selling XRP?
This 580% spike in spending confirms that hodler wallets are actively distributing XRP, likely to capitalize on prior gains. Such exits often precede consolidation phases as early participants reduce exposure.
Related: XRP Price Prediction: XRP Poised for Breakout Ahead of ETF Approval
Analysts are now watching to see if this is a healthy correction or the start of a deeper downturn. The $2.50 region is the pivotal support level traders are monitoring.
XRP Technicals: $2.50 Support vs. Long-Term Breakout Pattern
Market analyst ChartNerd noted that XRP’s weekly chart reveals a powerful Fibonacci confluence. The coin recently broke from a prolonged consolidation, echoing a 2017 pattern.
Source: X The analysis suggests that if XRP sustains momentum above $2.50, the next major resistance levels are at the 127.2% and 161.8% Fibonacci extensions. These projections align with targets in the $8.00 to $25.00 range, supporting a long-term bullish breakout narrative.
Short-Term: Wave 2 Correction Risk
This long-term optimism is tempered by short-term risks. Analyst PrecisionTrade3 pointed out that XRP might currently be in a Wave 2 correction. This retracement could dip toward the 0.5 Fibonacci level near $2.44 before rebounding toward $2.57. The analyst cautioned that a stronger pullback might follow once this temporary rally ends.
At press time, XRP trades at $2.54 with a market capitalization of $152 billion and a 24-hour trading volume of nearly $5 billion. While selling by long-term holders has weighed on momentum, the broader technical framework suggests a bullish setup remains intact if $2.50 continues to hold as strong support.
Related: XRP November Breakout Above $3 Hinges On $2.70–$2.77 Range Today
