XRP’s recent price action shows a failed breakout attempt that has dampened bullish expectations.
Despite briefly testing upper resistance levels, the altcoin faced heavy selling pressure from investors, triggering a pullback. The abrupt wave of profit-taking appears to be the key driver behind the downturn observed over the past week.
XRP Holders Move To sell
The balance of XRP on exchanges has seen a sharp increase, signaling strong selling activity. In the last seven days, approximately 320 million XRP, worth nearly $950 million, have been transferred to trading platforms.
SponsoredThis move reflects a shift in investor behavior, as holders quickly capitalize on minor gains rather than maintaining long-term conviction. Such behavior often undermines market stability and prevents sustainable price recoveries, leaving XRP vulnerable to deeper corrections in the coming days.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
The Age Consumed metric, which tracks the movement of long-held coins, recorded a significant spike recently. This suggests that long-term holders (LTHs) are actively selling their assets. Historically, such selling by LTHs signals waning confidence, particularly damaging since these investors often anchor market sentiment and liquidity.
This wave of selling pressure reinforces bearish momentum for XRP. When experienced investors liquidate their positions, it discourages new entrants and limits upside potential. Consequently, the ongoing exit of long-term holders adds weight to the current downtrend and may keep recovery efforts short-lived.
XRP Price Needs To Bounce Back
At the time of writing, XRP is trading at $2.96, maintaining its position just above the $2.94 support level. The altcoin was poised to break out of its descending wedge pattern, but that attempt has failed for now, suggesting further weakness.
If the selling trend persists, XRP could extend its decline. The token risks dropping to $2.85 or lower toward $2.75, testing the lower boundary of the wedge pattern. Such a fall would confirm bearish dominance.
However, if investors regain confidence and halt the ongoing sell-off, XRP could stage a recovery. A successful rebound past $3.02 may open the path to $3.12 or higher, potentially invalidating the bearish outlook.
