XRP has officially overtaken USDT in market capitalization, reaching $164.47 billion, and becoming the third-largest cryptocurrency globally. Despite this major achievement, analysts warn of possible short-term downside risks due to profit-taking and market resistance near critical price levels.
XRP Market Cap Hits 4-Month High
The recent rally in XRP’s price pushed it to a 4-month high, with the altcoin trading around $2.78. During the last 24 hours, XRP posted a 9% price increase, peaking at 16% during intra-day highs. The market cap surge allowed XRP to surpass Tether (USDT), solidifying its place as one of the top three digital assets by value.
Over 140 Million XRP Sold to Exchanges
However, not all signals point to further gains. More than 140 million XRP, worth over $387 million, have been moved to exchanges in the past 24 hours. This significant sell-off activity reflects increased profit-taking by investors, a behavior commonly seen during bull market peaks.
When supply in profit surpasses 95%, as it recently has, it often marks a critical inflection point. Historically, this level has signaled market tops, prompting sideways movement or corrections in price. While XRP has held up in similar scenarios before, the volume and speed of selling activity are raising concerns.
XRP Price Faces Key Resistance at $3.00
XRP’s rally stalled just below the psychological resistance of $3.00, a level that now serves as a critical short-term barrier. If the selling pressure continues, a drop to $2.65 or even $2.35 could follow, especially if market momentum weakens or sentiment shifts bearish.
Despite strong recent gains, market confidence appears fragile. The sharp inflow of XRP to exchanges suggests some holders are exiting positions, wary of potential reversals.
Bullish Momentum or Imminent Pullback?
While XRP’s long-term fundamentals remain strong, the short-term outlook may involve price corrections. Investors are advised to watch for price action near the $2.78–$3.00 zone and monitor exchange inflows closely.
The next 48–72 hours may determine whether XRP can break above key resistance or enter a period of consolidation and pullback.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.