XRP Falls Below $2 After $721 Million Profit Realization

An XRP wallet, aged 5-7 years with a cost basis of $0.40, realized over $721.5 million in profit on December 11. This occurred while XRP was at a significant $2.0 price level, indicating potential market instability.

The $2 level for XRP is crucial due to its psychological and technical significance.
Since early last year, the support zone between $2 and $1.90 has been frequently tested but maintained by bulls.
The large profit realization suggests market distribution that could affect XRP's price stability.

CryptoVizArt notes that Bitcoin's $80K-$90K consolidation range is causing stress similar to January 2022, with relative unrealized losses approaching 10% of the market cap. This affects liquidity and increases sensitivity to macroeconomic changes.

Market-wide tension can amplify the impact of significant sell events like the recent XRP transaction.
Such events might widen spreads and reduce market depth, influencing prices more than usual.

The current situation hints at whether $2 can remain a support level as old supply exits and new demand enters the market. XRP was trading at $1.89 at press time, making the upcoming weekly close crucial for future price direction.