Ripple’s price movement is facing resistance near $2.66, suggesting a decline is imminent. On-chain data shows that XRP holders are realizing profits after a massive rally and selling pressure is increasing. If the daily candlestick closes above $3, the bearish theory will be invalidated.
Ripple (XRP) price fell slightly on Monday to around $2.47 after rising more than 13% in the previous week. On-chain data shows that XRP holders are realizing profits after a massive rally, with increasing selling pressure and hinting at a short-term pullback in the coming days.
XRP holders selling bags
Ripple price increased more than four times from early November to early December. After such a massive rally, profit taking is another short-term risk for Ripple. Santiment's network realized profit and loss (NPL) metric suggests that holders are booking profits at the top. XRP's bad debt index spiked on December 1st, indicating that holders are selling their bags at a sizable profit on average. Last month's rally was followed by a similar spike on May 1, 2021, which led to a correction of more than 35% in the following two weeks. If history repeats itself, XRP could see a similar decline in the short term.
Ripple network realized profit and loss chart. Source: Santiment
According to data from Coinglass, XRP's long-short ratio is 0.85, the lowest level in a month. This ratio reflects bearish sentiment in the market, with a number below 1 suggesting that more traders are expecting the asset price to decline, indicating that Ripple price may face a decline in the future. It suggests something.
Ripple long-to-short ratio chart. Source: Coin Glass
Ripple price prediction: bulls show signs of exhaustion
Ripple price is facing resistance near $2.66 on Sunday. As of this writing on Monday, it is down slightly at around $2.47.
If the $2.66 level continues to hold as resistance, XRP could extend the decline to retest the psychologically important level of $2.00.
The RSI on the daily chart is 70, hovering around the overbought level of 70 and trending downwards, indicating weaker bullish momentum. If the RSI breaks out of overbought territory, it could be a clear sell signal for a pullback.
XRP/USDT daily chart
Conversely, if XRP breaks above $2.66 and closes above $3, the rally could be extended and retest the all-time high (ATH) of $3.40 seen on January 7, 2018. there is.
