Retail Investors Sell at First Surge, Curbing XRP Rally

▲ XRP (XRP)/AI-generated image ©

XRP, which staged an explosive intraday surge of as much as 18.7%, has surrendered half of its gains after encountering hasty profit-taking from short-term investors. The long-awaited bullish momentum has been tempered by selling pressure, making a breakout above short-term resistance and the defense of key support levels urgent tasks for further upside.

According to cryptocurrency outlet BeInCrypto on February 15 (local time), XRP jumped 18.7% during a recent trading session but later gave back its gains, trading around $1.47, down 1.77%. A long upper wick on the chart and the rapid slowdown in upward momentum clearly indicate early profit-taking by investors, suggesting that buying conviction remains fragile.

Exchange net position change data shows consistent selling among XRP holders. Green bars on the indicator, which represent inflows to exchanges, typically signal selling intent. Despite the recent price spike, investors appear to be offloading holdings to lock in profits amid volatile market conditions. This behavioral pattern is suppressing meaningful resistance breakouts and reinforcing price consolidation within a specific range.

In particular, the Market Value to Realized Value (MVRV) long/short difference indicator, which measures the distribution of unrealized profits between long-term and short-term investors, reveals that short-term holders currently account for a larger share of profits. The price-sensitive and reactive nature of short-term investors has been a key factor dampening the recent rally. As long as their profit dominance persists, further upside attempts are likely to face repeated resistance.

The most urgent objective for the market is to firmly establish the $1.51 level as solid support. With the current price at $1.47, below this level, and resistance near $1.62 capping further gains, a renewed wave of selling by short-term holders could push the price down to $1.36.

Conversely, if selling pressure is absorbed and demand stabilizes, XRP could regain upward momentum. Technically, a decisive break above $1.62 would shift the chart structure into bullish territory. With sustained buying interest, analysts suggest there is ample potential to invalidate the bearish outlook and resume a rally toward $1.76.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on its content. The information provided should be interpreted for informational purposes only.