XRP Price Faces Downward Risk Amid Investor Sell-Off
XRP's recent surge to a high of $3.66, driven by a market-wide rally, is showing signs of weakness. Over the past week, XRP increased by 27%, reaching $3.50. However, a decrease in new investors suggests a potential correction is on the horizon.
XRP Investors Showing Selling Behavior
Over the last 48 hours, the number of new XRP investors sharply declined from 11,058 to 3,930. This drop indicates waning interest from new market entrants who previously fueled the rally.
The earlier increase in new wallets reflected growing confidence, but this rapid decrease now suggests skepticism about further upward movement.
Such behavior is typical after price peaks, as investors await clearer market signals before committing more capital. Since new investors often drive short-term price movements, their retreat suggests slowing momentum. With XRP struggling to maintain demand above its recent high, the chances of consolidation or a downward price correction increase.
Long-Term Holders Begin Selling
The HODLer net position change for XRP shows red bars for the past two days, signaling that long-term holders (LTHs) are starting to sell. This marks the first sell-off by LTHs in over a month. Given their historical role in maintaining price stability, this shift in behavior is a crucial warning sign.
These sales often reflect a loss of confidence in continued price growth or an opportunity to secure profits. Because long-term holders influence market sentiment, their decision to sell XRP could intensify downward pressure. As a result, XRP may experience increased volatility in the short term.
Can XRP Reach a New High?
XRP is currently trading at $3.50, holding gains from a strong week but showing signs of slowing momentum. The price is only 4% away from retesting its high of $3.66. However, maintaining current levels could be challenging if investor sentiment continues to decline.
If the outflow of new and long-term investors persists, XRP could lose support at $3.38. A break below this level may lead to further declines, potentially pulling the price down to $3.00 and reversing recent gains. The lack of buying interest would support this bearish outlook.
However, if demand rebounds, XRP could stabilize above $3.38 and attempt another push toward $3.66. A successful breakout could push the price to $3.80, marking a new high and disproving the correction scenario.
Codeum is dedicated to enhancing security within the blockchain space. Safeguarding your digital assets with top-tier smart contract audits, thorough KYC verification, and expert tokenomics consultations. We offer custom smart contract and DApp development services tailored to your project's requirements. For partnerships and secure launchpad integrations, connect with Codeum today.