Bitcoin (BTC) has declined from its $93,495 peak, now trading at $92,428 as profit-taking accelerates.

Market sentiment, marked by “extreme greed,” signals a possible price reversal as traders increasingly lock in gains.

Bitcoin’s Rally Prompts Its Long-Term Holders To Sell

BeInCrypto’s assessment of BTC’s on-chain performance has shown a spike in coin distribution by its long-term holders (LTHs). These are investors who have held their coins for an extended period, typically defined as more than 155 days. 

Per Glassnode’s data, the coin’s Hodler Net Position Change dropped to a five-month low on Tuesday. This metric reflects the overall buying and selling activity of long-term Bitcoin holders. This decline indicates that the group sold over $3 billion worth of BTC on that day — their highest single-day sell-off since June 26.

Notably, BTC transactions have been significantly profitable over the past few weeks. As of this writing, the ratio of the coin’s daily transaction volume in profit to loss (assessed using a 30-day moving average) is 2.01. This suggests that for every BTC transaction that has ended in a loss, 2.01 transactions have returned a profit. 

Moreover, BTC’s market value to realized value (MVRV) ratio suggests that the coin may be overvalued, prompting more holders to sell. According to Santiment’s data, BTC’s current MVRV ratio is 182.06%.

At 182.06%, BTC’S MVRV ratio suggests that its current market value is significantly higher than its realized value. Therefore, if all coin holders were to sell, they would, on average, realize 182.06% profit. 

BTC Price Prediction: All Lies With the Coin’s Long-Term Holders

At press time, BTC trades at $92,428, slightly below its cycle peak of $93,495. If LTHs persist in their profit-taking activity, BTC’s price will fall further from this high, toward support below $90,000. According to readings from the coin’s Fibonacci Retracement tool, the next major support is formed at $83,983. 

However, if selling activity stalls and the coin sees a spike in new demand, its price will reclaim the $93,495 all-time high and attempt to rally past it. 

The long-awaited rally in the XRP price may be coming to a fast end, as a crypto analyst has predicted a 40% crash for the cryptocurrency. Despite XRP’s recent bullish momentum breakthrough to the $1 mark, the analyst has revealed that XRP is showcasing a Gravestone DOJI candlestick formation, signaling a bearish outlook for the cryptocurrency. 

XRP Price Expected To Crash 40% 

A crypto analyst identified as ‘Without Worries’ on TradingView has released a detailed analysis of the XRP price action, projecting a 40% crash in the short term. The analyst emphasized that this 40% decline could happen in days, with XRP set to witness a significant reversal from its recent price highs. 

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According to the TradingView crypto expert, the XRP price action witnessed an impressive 150% gain over the past 10 days. This price increase fueled its rise to the $1 milestone for the first time in three years. Despite these bullish developments, the analyst has highlighted several reasons and technical indicators that point to an imminent trend reversal and price correction for XRP. 

In the XRP price chart, the analyst identified and confirmed the Gravestone DOJI, a bearish candlestick pattern that appears during market tops and signals the potential for a price correction. The Gravestone DOJI candle indicates that buyers who had tried to push the price of XRP higher were significantly overwhelmed by sellers set on profit-taking. 

Another indicator that suggests that the XRP price could be preparing for a significant correction is the Relative Strength Index (RSI) and Money Flow Index (MFI) support breakouts. The RSI measures the speed and changes in an asset’s price movements, indicating whether it is overbought or sold. On the other hand, the MFI considers both price and volume, highlighting where the money is flowing. 

A support breakout in XRP’s RSI signals a potential trend reversal due to an overbought market. A breakout in MFI, which the analyst has stated is a very noteworthy indicator, suggests that funds are leaving an asset, ultimately signaling weakening buying pressure. 

More Factors That Suggest An Upcoming Crash

As mentioned earlier, the TradingView analyst has predicted that the XRP price may crash by 40%, meaning the cryptocurrency could drop from its current value of $1.11 to $0.66. In addition to the factors above, the market expert has stated that XRP’s price action is currently outside the Bollinger bands, which measure an asset’s price volatility. 

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The analyst has revealed that 95% of price actions occur within the bands. Hence, prices outside the Bollinger bands often signal a pullback or correction toward the mean point at $0.73. Moreover, he noted that the bands are curving inwards, suggesting that XRP buyers may be exhausted, increasing the likelihood of a price reversal. 

Furthermore, the TradingView crypto analyst highlighted that most traders are either long or bullish on XRP, which is a contrarian signal for the cryptocurrency’s price outlook. While he acknowledges a possibility for a continuous upward trend for XRP, the analyst has also noted that present indicators suggest a low probability. 

Featured image created with Dall.E, chart from Tradingview.com

GRASS price has shown remarkable activity since its listing on major exchanges at the end of October. In its first week, the price skyrocketed from $0.65 to $1.60. However, recent metrics show GRASS entering a neutral zone, with its RSI at 51 and ADX at 14.84, indicating moderate recovery and weak trend strength.

As traders watch key resistance and support levels, the potential for a 44% surge or a 26% correction depends heavily on the strength of its ongoing uptrend.

GRASS Is Currently In The Neutral Zone

The Relative Strength Index (RSI) for GRASS has climbed to 51, up from a low of approximately 35. This shift indicates a recovery in momentum, moving from oversold territory toward a more balanced state. RSI, a key momentum indicator, measures the strength and speed of price movements, providing insight into whether an asset is overbought or oversold.

Values below 30 typically signal oversold conditions, while readings above 70 suggest overbought levels. At 51, GRASS’s RSI reflects neutral momentum, implying neither strong buying nor selling pressure currently dominates.

Despite being down nearly 15% over the past seven days, GRASS price has surged almost 10% in the last 24 hours. The RSI’s movement to 51 aligns with this short-term rebound, suggesting a shift toward stabilization after recent declines.

With RSI in the neutral zone, GRASS may be poised for consolidation or moderate gains, though a break above 70 could signal stronger upward momentum for one of the biggest airdrops of 2024.

GRASS Current Trend Isn’t That Strong

The Directional Movement Index (DMI) for GRASS reveals an ADX value of 14.84, suggesting a weak market trend. The Average Directional Index (ADX) measures the strength of a trend without indicating its direction. Typically, values above 25 signal a strong trend, while values below 20 indicate a lack of clear trend momentum.

At 14.84, the ADX suggests that GRASS is experiencing a period of low trend strength, which means that price movements are less likely to follow a sustained direction.

The DMI also includes the +DI (Directional Indicator) and -DI, which provide insights into the direction of the price trend. GRASS’s +DI is at 21.26, indicating slightly stronger bullish pressure, while the -DI is at 17.89, reflecting weaker bearish momentum.

However, with the ADX below 20, neither the bullish nor bearish pressure is strong enough to establish a clear trend. This setup suggests a choppy market where price movements may continue without a decisive upward or downward trajectory unless the ADX rises significantly.

GRASS Price Prediction: A 44% Surge?

GRASS’s current price is moving above its short-term EMA lines, indicating growing bullish momentum in the short term. Exponential Moving Averages (EMAs) smooth out price data and highlight trends, with shorter-term EMAs responding quickly to price changes.

This movement suggests that buyers are gaining control, and the asset’s immediate trend is turning positive. If this momentum continues, GRASS price could test key resistance levels, providing a clearer signal of sustained upward movement.

If the uptrend strengthens, GRASS could face its next resistance at $2.91. Breaking through this level could trigger further bullish activity, potentially driving the price to $3.66, representing a significant 44% upside. Conversely, if the uptrend weakens, the price may reverse, testing support at $2.41.

Failure to hold this level could lead to a deeper correction, with GRASS price potentially dropping to $1.87, marking a 26% downside. These levels highlight the importance of trend strength in determining the next significant price movement.