Bitcoin’s recent explosive price action has resulted in a significant surge in profit-taking among long-term holders (LTHs).

According to a review by Glassnode, the LTHs have realized $2.02 billion in daily profits, eclipsing the figure recorded in March 2024 and marking a new all-time high (ATH).

Long-Term Holders Ramp Up Distributions

The blockchain intelligence platform’s report shows long-term BTC holders distributed 507,000 coins since September, representing a substantial release of previously dormant supply.

While the amount is lower than the 934,000 BTC sold when the cryptocurrency rallied earlier in the year, it still represents a more aggressive approach. On average, 0.27% of the total LTH supply is being distributed daily, a level surpassed only 177 times in Bitcoin’s entire trading history.

Glassnode believes this activity is critical for price discovery, as it is reintroducing large volumes of supply into liquid circulation. In the past, such periods of heightened profit-taking coincided with strong inflow demands, a key component for maintaining upward momentum.

A closer examination of the distribution patterns revealed that coins held for six months to one year are behind most of the sell-side pressure. This cohort accounts for at least 35% of total realized profits, which comes to about $12.6 billion.

Per Glassnode’s analysis, the coins were mostly picked in 2023, and they reflect a swing-trade approach by investors who took advantage of the impetus that followed the launch of spot Bitcoin exchange-traded funds (ETFs) in January.

Conversely, those who have held their coins for longer than a year have been more conservative in their spending, suggesting that more seasoned heads remain optimistic about BTC’s long-term prospects.

Supply “Air Gap” Below $88K Raises Correction Concerns

Bitcoin’s recent run took it to within touching distance of the $100,000 mark. It peaked at $99,645 before dumping more than $6,000 as short-term holders (STHs) took profit.

Currently, it is changing hands at just over $96,000, with Glassnode data highlighting a potential risk zone below $88,000, where minimal trading occurred during the last rally.

Glassnode says this so-called “air gap” in supply distribution could signal a vulnerable price area, especially if demand weakens or profit-taking increases.

Given BTC’s historical price discovery process involving cycles of upswings, corrections, and consolidations, the experts suggest that a lack of substantial trading volume in the $88,000 range may necessitate a pullback to establish stronger support before the coin can confidently break through $100,000.

Additionally, they suggested that for the cryptocurrency to have a sustainable climb, the market needs to absorb the ongoing sell-side pressure. However, given the jump in realized profits by LTHs, a supply overhang exists in the market despite strong demand, something Glassnode feels may weigh on prices in the short term.

Ripple’s recent price action reflects a state of indecision following a rejection at the $1.6 resistance level. The market is currently undergoing a low-volatility consolidation phase, signaling a potential continuation of the corrective stage in the short term.

By Shayan

The Daily Chart

XRP’s impulsive uptrend broke several critical resistance levels, culminating in a significant rally toward the $1.6 resistance zone.

This level marked a peak in bullish momentum, leading to a rejection and subsequent consolidation. The price has since retraced toward the previously broken $1.3 threshold, a key support level, reflecting the buyers’ efforts to sustain the bullish trend.

However, the market is currently in a phase of indecision, characterized by low-volatility fluctuations. The RSI indicator also highlights an overbought condition, further supporting the likelihood of a continuation in the consolidation stage. This phase is expected to persist in the short term, with an eventual breakout needed to define the next direction.

The 4-Hour Chart

On the 4-hour timeframe, XRP’s price action still maintains a bullish structure, marked by a sequence of higher highs and higher lows. The formation of an expanding wedge pattern reflects the buyers’ dominance up to the $1.6 resistance region, where the price experienced a rejection.

This has led to the emergence of a bullish flag pattern, suggesting the potential for a continuation of the prior uptrend if the price breaks above its upper boundary.

With the cryptocurrency now approaching the critical support level at $1.3, the consolidation stage could end in the mid-term. A breakout above the flag could result in XRP retesting the $1.6 threshold, with further gains likely if the resistance is overcome.

TL;DR

• XRP surged to $1.44 with increased network activity signaling growing interest and potential for further gains.
• Analysts predict targets of $2 soon and over $4 by Christmas, driven by bullish momentum.

XRP’s Resurgence

Ripple’s native token has been flying high recently, with its price jumping to a three-year high of $1.60 on November 23. In the following days, it headed south alongside the broader market correction, but the past 24 hours have been more than successful.

Currently, XRP trades at around $1.44, representing a 10% daily increase. Its market capitalization is well above $80 billion, positioning the asset as the sixth-largest in the entire sector.

The revival coincides with some important XRP-related metrics that have been on the rise recently. For instance, the XRP payments from one account to another soared above 1.2 million on November 26 (marking an 85% increase on a 24-hour scale). The number of executed transactions on the XRP Ledger (XRPL) has also pumped substantially. 

This typically indicates increased activity and utilization of the network. It can also signal a growing interest in XRP, which could be followed by a further price rally of the underlying asset. 

Crypto X is full of analysts expecting the bull run to continue in the following months. Dark Defender thinks XRP could spike to $1.63 if it surpasses the $1.44 resistance level. 

“If we see 3 consecutive candle closes especially on 4-hour frame, then we consider a run towards $2 area! And that would be just the beginning of the beginning,” the trader added.

Mikybull Crypto also believes the price is headed to $2, while JAVON MARKS speculated that XRP could reach a staggering $99 if it mirrors its performance in the past. 

It is important to note that the token’s market cap needs to skyrocket beyond $5 trillion for this to happen. Currently, the capitalization of the entire sector is less than $3.5 trillion, making the forecast quite challenging (to say the least).

New ATH Before Christmas?

Other analysts who see a bright future ahead for XRP include the likes of CrediBULL Crypto and Crypto Assets Guy. The former recently suggested that the token’s valuation could head north to $1.60 “as long as BTC doesn’t ruin the party.” 

The latter was even more bullish, envisioning a pump to $2 by the end of November and a new all-time high of over $4 before Christmas. Moreover, they assumed XRP could skyrocket to $10 during the first quarter of 2025.