- XRP reached $3.41 on January 16 but now faces resistance at $3.27 and support at $2.94.
- Rising MVRV ratios and whale sell-offs suggest increasing bearish pressure on XRP’s price.
- Profit-taking may push XRP toward $2.13, but renewed accumulation could drive it past $3.41.
On January 16, XRP hit a new all-time high of $3.41. Since then, though, it’s been stuck in a price range—bumping against resistance at $3.27 and finding support around $2.94. This sideways action suggests an equilibrium between buying and selling pressures, but on-chain data hints that this balance may soon tilt in favor of the bears.
Profit-Taking Surge Looms Over XRP’s Gains
The token’s rally wasn’t exactly small either. Back in November 2024, XRP surged an eye-popping 500%, driven by Bitcoin’s breakout and a wave of optimism following Donald Trump’s 2024 election victory. After that, XRP pulled back to hover between $2.0 and $2.6 before charging past $3 in early January. By the 16th, it reached its peak at $3.41.
But now? The market’s cooling off. On-chain analysis from BeInCrypto shows that XRP might be facing increasing selling pressure. The altcoin’s Market Value to Realized Value (MVRV) ratios—which measure how overvalued or undervalued an asset is—are waving red flags. Current data reveals that XRP’s seven-day MVRV stands at 1.50%, while its 30-day ratio sits much higher at 14.17%.
What Exactly Is the MVRV Ratio?
The MVRV ratio compares an asset’s current market value to the prices holders originally paid for it. When the ratio is negative, it signals undervaluation, meaning the market price is below what people paid. Positive ratios, however—like XRP’s right now—imply overvaluation, meaning holders may soon sell to secure profits.
And that’s not all. Whales (those with 10 to 100 million XRP) are already offloading their holdings. Santiment reports that this group has dumped 60 million tokens—valued at over $180 million—since XRP hit its peak. This 1% reduction in large whale holdings may further weigh on XRP’s price if the market fails to absorb the selling pressure.
Will XRP Break Higher or Drop to $2.13?
If whales and smaller holders ramp up their profit-taking, XRP could slip below $3 and fall toward the $2.13 level. A spike in selling activity may shatter the horizontal price channel XRP currently trades in.
Still, hope isn’t lost for the bulls. Should profit-taking slow and buyers resume accumulating, XRP could climb back above the $3.27 resistance and take another shot at breaking its all-time high of $3.41. Strong enough demand might even propel the token to uncharted price territory.
