XRP Long-Term Holders Hold the Key: Can They Help Break the $0.65 Barrier in Q4?

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XRP has faced a challenging six-month period, struggling to break above the critical 78.6% Fibonacci Retracement level at $0.65. This resistance has kept XRP in a bearish trend, despite multiple attempts to breach it since early March.

Market Sentiment Shifts

Recently, market sentiment has shifted, sparking optimism among long-term holders (LTHs). The Market Value to Realized Value (MVRV) Long/Short Difference indicator currently stands at 3.1%. This figure indicates that LTHs are in profit, which generally signals a bullish trend. LTHs typically hold their assets longer, waiting for significant gains before selling. Moreover, the reduced presence of short-term holders lowers the risk of immediate selling pressure. This situation may provide XRP with a chance to rally.

*XRP Realized Profits/Loss. Source| Santiment*

However, mixed signals continue to emerge in the market. The Realized Profit indicator has spiked recently, suggesting that some investors are cashing out to secure gains. This profit-taking could exert downward pressure on XRP’s price. If long-term holders decide to sell, it may counteract the prevailing bullish sentiment and lead to a cautious market environment.

Price Analysis and Predictions

As of October 1, 2024, XRP trades at approximately $0.62. It maintains a position above the crucial 61.8% Fibonacci retracement line at $0.59. Holding above this support level is essential for future upward momentum. Analysts emphasize that breaking through the $0.65 resistance in Q4 2024 could pave the way for further gains.

*XRP Price Analysis. Source| TradingView*

Key resistance lies at $0.65, while support rests at $0.59. Predictions for XRP’s price by late October suggest fluctuations between $0.658 and $0.875. Some forecasts even indicate a potential rise to $0.702339 by October 23, 2024.

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In summary, XRP’s prolonged struggle may finally see resolution in Q4 2024 if market conditions remain favorable. Long-term holders play a crucial role in supporting the price by holding their assets rather than selling quickly. The interplay between profit-taking and long-term holding will significantly influence whether XRP can break its six-month resistance and embark on a more bullish trajectory in the coming months.