The XRP price has decreased by nearly 4.7% this week, currently around $2.80. Although this may appear to be a standard pullback, on-chain data indicates a more significant scenario. Major holders and long-term investors are reducing their exposure, suggesting a waning confidence in the short term.
Nonetheless, a technical signal on the chart implies that all is not lost if XRP can maintain its position above a vital support level.
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Whales And Hodlers Trim Positions As Selling Pressure Builds
Whale activity has grown more cautious. In the last 24 hours, XRP wallets holding between 10 million and 100 million tokens have decreased their total supply from 7.95 billion to 7.93 billion XRP.
This marks a reduction of approximately 20 million tokens, valued at around $56 million at the current XRP price of $2.80.
Concurrently, long-term holders have been steadily offloading since early October.
Data from the HODLer Net Position Change, which monitors monthly accumulation or distribution among long-term investors, reveals that holdings dropped from 163.68 million XRP on October 2 to 137.78 million XRP, an approximate decline of 25.89 million tokens, equivalent to about $72.5 million in value.
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In total, this represents about $130 million in selling pressure within a week. The outflow coincides with XRP’s 4.7% weekly decrease, indicating that both whales and hodlers are reducing risk rather than increasing exposure.
Hidden Bullish Divergence Offers One Last Hope For XRP Price
The selling from key groups is also evident on the chart. The XRP price continues to trade below a descending trendline (on the 12-hour chart), forming a descending triangle, which generally indicates increasing bearish pressure.
Yet, amid the downturn, one technical formation could offer a hint of optimism.
On the 12-hour chart, XRP has established a hidden bullish divergence, where the price creates higher lows while the Relative Strength Index (RSI) displays lower lows.
This divergence usually suggests that selling pressure is diminishing, implying that the larger uptrend might persist if support is maintained.
For XRP, the critical level is at $2.77, the low from September 27. If the 12-hour candle remains above this point, it could validate the divergence. This would pave the way for $2.95 and $3.09, where prior rallies found support and faced rejection, respectively.
However, falling below $2.77 would weaken the divergence argument, possibly allowing sellers to push XRP to $2.69 or lower.
Currently, the XRP price stands at a pivotal moment. Intense selling has clouded sentiment, yet one essential technical signal still provides a slender chance for recovery.
