XRP price drops alongside mass profit taking by Ripple holders

• XRP price dropped to $0.62 on Friday as holders took $368.79 million in profits in the past week. 
• The deadline for the SEC vs. Ripple lawsuit for the regulator's remedies-related opening brief is March 22. 
• XRP trade volume observed a spike several times this week as on-chain activity in the altcoin peaks. 

XRP price dipped to $0.62 on Friday, sustaining above the psychologically important $0.60 level despite increased profit-taking activities from the altcoin’s holders. The altcoin is set to close the week with mild losses, correcting slightly from the recent price recovery, ahead of a key deadline in the long-standing SEC vs. Ripple lawsuit on March 22. 

Also read: XRP price drops below key support ahead of SEC’s remedies-related brief in Ripple lawsuit

Daily digest market movers: XRP holders engage in profit-taking activities in March

• XRP holders have taken $370 million in profits in the past week, since the beginning of March 2024. This could be one of the main reasons of the price correction seen in the last few days.
• According to on-chain data from Santiment, XRP holders have taken profits consistently throughout March, as the altcoin climbed to a peak of $0.6685 on Tuesday. 

Network Realized Profit/Loss. Source: Santiment 

• XRP has noted a spike in its on-chain activity, with an increase in Active Addresses and Whale transactions valued at $100,000 and higher. Both metrics have spiked in the past week. By itself, an increase in active addresses and transactions from large-wallet investors can be bullish or bearish for the asset's price. However, if transactions spike after a price rally –like the recent one seen for XRP– it could mean that whales are looking to sell and book profits.

XRP Active Addresses and Volume. Source: Santiment 

• The SEC vs. Ripple lawsuit's next important deadline is March 22, the opening brief in the remedies-related discovery. 
• The altcoin's price has declined despite rising trade demand, likely in response to selling pressure from traders' profit-taking activities. 

Technical Analysis: XRP price could sweep lows before recovery

If selling pressure persists, XRP price could sweep the $0.57 low, represented by the 50% Fibonacci retracement level of the rally to its 2024 high of $0.6685.

The Moving Average Convergence/ Divergence (MACD) indicator and the Awesome Oscillator (AO) suggest that a sweep of support at $0.57 is likely before the altcoin's price can recover. 

XRP/USDT 1-day chart 

However, a daily candlestick close above the 78.6% Fibonacci retracement level at $0.62 could invalidate the thesis of a sweep of support. Should XRP price also overcome the $0.66 resistance level, it could rally towards its December 2023 high of $0.70. 

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