XRP’s recent attempt to rally has faltered as the altcoin was unable to break free from its descending wedge formation. The cryptocurrency’s price is currently stagnant, with whale activity indicating diminishing confidence among major holders.
As XRP struggles to regain its momentum, investor sentiment is further strained amidst ongoing market uncertainty.
Sponsored
Sponsored
XRP Holders Sell
In recent days, XRP whales have been offloading their assets, contributing to the slowdown in price. Addresses holding between 100,000 and 1 million XRP have sold over 100 million tokens in just 10 days, reflecting a significant decrease in confidence among major investors.
This $300 million sell-off has reduced whale holdings to their lowest point in almost 34 months. Such a steep decline in supply from large holders indicates increasing hesitation regarding XRP’s short-term prospects.
The drop in accumulation shows that many whales are opting for safety, anticipating possible further price corrections.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
On-chain data supports this bearish trend. The Realized Profit/Loss Ratio has reached a two-month high, suggesting that investors are selling during price increases rather than accumulating.
Sponsored
Sponsored
This spike indicates that market participants are taking advantage of recent price rises, expecting limited upside in the near future.
The increase in the ratio also highlights prevailing bearish sentiment. With profit-taking increasing, XRP’s market structure seems fragile. Without renewed buying pressure soon, continued selling could sustain downward pressure on the token’s price, hindering any significant recovery efforts.
XRP Price Fails Breakout
Currently, XRP is trading at $2.94, attempting to maintain this level as a support floor. The decline followed the unsuccessful breakout from the descending wedge. Initially, the altcoin appeared to show potential for a bullish continuation but ultimately lacked the momentum to sustain it.
Under the current circumstances, XRP may experience additional downside pressure. Continued declines might push the token towards $2.85 or lower if bearish sentiment continues. Such movement would likely incite further selling among short-term traders.
However, improved overall market conditions could reignite optimism. Should XRP manage to breach $3.12, it could aim for $3.27 in the short term. A confirmed breakout could lead to a 19% rally, bringing the price to $3.61 and negating the bearish narrative.
