XRP is navigating turbulent price movements as it attempts to reach a new all-time high. The cryptocurrency has consistently tested the $2.95 support level but struggles to gain sustained momentum.

While large-scale selling by "whales" has added to the market's uncertainty, long-term holders (LTHs) have been instrumental in mitigating severe declines.

A recent wave of sales, involving whale addresses holding 10 to 100 million XRP, saw approximately 160 million tokens exchanged in a single day. This $500 million transaction underscores concerns about XRP's ability to rally effectively. The lack of upward momentum has prompted some large holders to lock in profits rather than maintain their positions.

Notably, this selling pressure might be temporary. Some whale investors have started reacquiring XRP, indicating renewed confidence in its long-term prospects. If this buying trend gains momentum, it could bolster XRP's effort to breach key resistance levels and once again approach its ATH.

XRP's broader momentum remains robust, evidenced by a highly positive MVRV Long/Short Difference. This metric suggests that long-term holders (LTHs) are still in profit, emphasizing their importance in stabilizing the price and preventing drastic sell-offs.

With LTHs showing restraint from selling, XRP's capacity to maintain its current price levels is strengthened. The presence of these "strong hands" in the market supports XRP's potential upward trajectory, provided that overall market conditions remain supportive.

Currently priced at $3.10, XRP holds above the critical $2.95 support. The level has been pivotal, tested twice over the past ten days, warding off potential declines. A firm defense of this level could pave the way for a potential rally. However, reclaiming the ATH of $3.40 remains an uphill task. If whale investors start repurchasing previously sold XRP, the likelihood of a rally increases, potentially driving the asset beyond $3.40 and marking a significant achievement for XRP.

Conversely, if XRP fails to maintain the $2.95 support without initiating a rally, investor sentiment could turn negative. This shift might lead to increased selling, pushing XRP down to $2.73 or below, which would negate the current bullish outlook and amplify downside risks.