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XRP Faces Key Test at $2 as Addresses in Profit Plunge to Year-To-Date Low

2 mins
Updated by Ann Maria Shibu
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In Brief

  • XRP price decline pushes addresses in profit to a year-to-date low of 5.24 million on March 31, signaling bearish market pressure.
  • Negative funding rate of -0.007% confirms market sentiment, favoring short positions and reflecting selling dominance.
  • XRP faces a crucial support level at $2.03; a breach could accelerate price decline toward $1.77, while new demand could shift the outlook.
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XRP has been on a steady decline over the past month, with its price weakness pushing the number of addresses in profit to its lowest count this year on March 31. 

This downturn reflects increased selling pressure as the bearish sentiment continues to dominate the market.

XRP Holders Face Mounting Losses

Amid XRP’s falling prices, the total number of wallet addresses holding the token in profit plunged to a year-to-date low of 5.24 million on March 31. This drop reflects the sustained bearish pressure on the altcoin as more holders find themselves in a losing position due to the token’s prolonged price downturn.

XRP Number of Addresses in Profit.
XRP Number of Addresses in Profit. Source: Glassnode

For context, since it climbed to an all-time high of 6.04 million addresses on March 2, the number of XRP addresses in profit has trended downward. 

This decline could increase the downward pressure on the token’s price because as profitability falls, more holders may choose to sell to cut losses, further fueling the bearish momentum. If this trend continues, XRP risks extending its price decline.

Further, the token’s steady negative funding rate confirms this bearish outlook. At press time, it stands at -0.007%, signaling the preference for short positions among derivatives traders. 

XRP Funding Rate
XRP Funding Rate. Source: Santiment

The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts to keep prices aligned with the spot market. When an asset’s funding rate is negative, short positions pay long positions, indicating that selling pressure is higher and traders are predominantly bearish on the asset.

This trend signals a lack of confidence in a near-term recovery, leaving XRP vulnerable to further losses.

XRP Faces Make-or-Break Moment as It Trades Above Critical Support Level

At press time, XRP exchanges hands at $2.11, trading above the key support floor formed at $2.03. If selling pressure strengthens and XRP breaches this support level, its downtrend would gain momentum, and its price could fall below $2 toward $1.77. 

XRP Price Analysis.
XRP Price Analysis. Source: TradingView

On the other hand, if XRP sees a spike in new demand, this bearish outlook will be invalidated. In that scenario, the token’s price could rally toward $2.27.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a Technical and On-Chain Analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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