XRP has faced a minor drawdown in recent days, losing the support of $3. The altcoin is now struggling to regain that level.
The next phase of recovery will depend heavily on investor sentiment, as their actions could determine whether XRP will continue to struggle or stage a rebound.
XRP Investors Are Selling
The Chaikin Money Flow (CMF) has recently shown a sharp downtick, indicating a decline in investor confidence. This drop signals that investors are pulling money out of XRP, reflecting a growing skepticism about the altcoin’s price trajectory. The sharp decline in CMF is concerning, as it suggests that outflows could continue unless a shift in sentiment occurs.
This skepticism is contributing to the recent bearish pressure on XRP’s price. As the outflows continue to increase, XRP’s ability to reclaim key levels becomes more difficult, potentially leading to further declines.
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XRP’s longer-term outlook is also influenced by its HODLer net position change, which has reached a seven-month low. This metric indicates that long-term holders (LTHs) are also selling, contributing to the downtrend. The consistent selling from LTHs, which has been ongoing since mid-July, has intensified over the past few days, amplifying the downward pressure on XRP’s price.
The LTHs, who have a significant impact on the price of XRP, are seeing their positions decrease. This continuous selling behavior is leading to a growing sense of bearishness among the broader holder base. As these influential holders reduce their positions, other investors may follow suit, further driving down the price.
XRP Price Needs To Reclaim Support
XRP is currently priced at $2.92, sitting just below the $2.95 resistance. The bearish market sentiment and outflows are evident, making it difficult for the altcoin to break through this resistance. A continuation of the current trend may lead to further downward pressure on the price.
XRP is likely to test the support of $2.65 in the coming days, unless investors shift their sentiment. If this support level fails to hold, XRP may experience further losses, putting additional strain on the altcoin and its investors.
To recover, XRP will need to reclaim $2.95 as support and break through the $3.00 mark. A successful breach of these levels could pave the way for XRP Price recovery towards $3.41, ultimately invalidating the current bearish outlook and offering hope for a potential recovery.
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