XRP threatens new gains.

Ripple's XRP has seen an impressive run recently, climbing to a new all-time high of $3.41 on January 16. However, this rally has sparked profiteering among traders, threatening the sustainability of recent gains.

With rising selling prices, XRP is poised to reverse the current trend.

Ripple Rally is not supported by high demand.

During Saturday's trading session, outflows from XRP spot markets reached $74 million. This represents the largest one-day capital inflow in the last 30 days. This follows a profit-taking trend that began on January 16 after the altcoin hit an all-time high.

When an asset exits, it indicates whether investors are selling or shorting the asset. This indicates a lack of caution or confidence as some participants are taking profits or moving assets elsewhere.

As more sellers enter the market, large spot flows like XRPs can put pressure on asset prices. This can create negative feedback, leading to increased sales and higher markdowns.

Moreover, the decline in XRP's daily trading volume confirms the increase in sales. The token price has increased by 2% in the last 24 hours. However, the trading volume fell by 26% during the same period, creating a negative difference.

This negative variance occurs when the trading volume decreases while asset prices increase. The rise in prices reflects the weakening of growth as there is no broad market participation.

This divergence suggests that XRP's rally over the past 24 hours may not be sustainable and a reversal or consolidation may follow.

XRP Price Prediction: One of two things

At press time, XRP is trading at $3.19. If sales continue, the token's price will fall further from its all-time high of $3.41 to trade at $2.45.

However, if it continues its current trend, it will revisit its all-time high and rally past.