XRP from Ripple has consistently decreased since September 18, losing approximately 7% of its value over the last week.
This drop has sparked speculation about whether it can regain the much-sought-after $3 price level by the end of the month.
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XRP Faces Selling Pressure as Major Holders Liquidate
As per Glassnode, short-term holders (STHs) of XRP, defined as those holding the asset for 1–3 months, have been steadily decreasing their holdings in recent days, adding to the selling pressure on the token.
The HODL Waves metric, which monitors the duration coins are held across various investor categories, demonstrates a marked decline in STH holdings since September 21. Currently, XRP STHs represent 10.72% of the token’s circulating supply, which is a drop of 5% over three days.
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This trend is crucial as STHs typically control a significant part of an asset’s circulating supply and often react quickly to market shifts. Consequently, their selling activity can exacerbate an asset’s decline, raising doubts about XRP’s ability to reach important price milestones in the short term.
Additionally, significant XRP investors have also gradually diminished their holdings this week, which could further impact the market negatively. Data from Santiment indicates that whales holding between 10 million and 100 million tokens have sold 90 million XRP since September 19.
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The sell-off from major holders could negatively influence market sentiment, as large distributions often indicate a lack of confidence in the stability of prices in the near future. Such actions may prompt further selling from smaller investors, adding more downward pressure on XRP’s value.
Will XRP Hold Its Ground or Continue to Drop?
Technical indicators suggest a cautious outlook. On the daily chart, XRP has dipped below its Ichimoku Cloud, indicating a probable bearish trend for the rest of September. Currently, XRP’s price lies below the Leading Spans A and B, marking resistance at $2.93 and $3.04, respectively.
The Ichimoku Cloud is utilized to assess market trend momentum and spot potential support/resistance points. Trading below this cloud reflects bearish market pressure, indicating stalled demand while selling pressure escalates.
For XRP, the resistance levels indicated by this measurement present significant hurdles to any short-term upward movement. If buying momentum remains weak, XRP could slide to $2.78, hindering its push above $3.
Nevertheless, if buying interest increases, XRP might experience a rebound, surpass the Leading Span A at $2.93, and strive to reach $2.99. A breakthrough past this level could pave the way for a rise beyond the $3.04 Leading Span B resistance.
