XRP Profitability Hits 83% – Sell Pressure-Induced Price Dip Likely

Core Insights - XRP price has struggled to maintain recovery, facing bearish sentiment due to short-term selling and investor skepticism [1] - Approximately 83% of XRP's circulating supply is currently profitable, marking a one-and-a-half-month high [2] - Rising profitability among holders often leads to increased selling pressure, particularly after extended consolidation [3] Market Behavior - Short-term holders have reduced their XRP holdings from 5.7% to 4.9% over the past week, indicating a trend of distribution [4] - The behavior of short-term holders, who tend to sell quickly once positions become profitable, limits the upside potential for XRP [5] - XRP faces challenges in absorbing supply without triggering deeper price retracements [6] Sentiment and Supply Dynamics - Overall market sentiment remains cautious, with exchange net position data showing active outflows for XRP [7] - The imbalance between inflows and outflows suggests that sellers still have significant influence in the market [7] - XRP is currently trading near $2.25, just below the $2.36 resistance, with the Money Flow Index indicating overbought conditions [8]