XRP has been under pressure after a recent decline, with Altcoin currently trading at $2.85. Investor skepticism is driving a wave of sales.
However, a key group of long-term holders continues to accumulate and provide much needed support for the cryptocurrencies they fought.
XRP investors switch to sales
XRP exchange balances have skyrocketed over the past week. Data shows that approximately $483 million worth of XRP has been moved to exchange. Such influxes are often associated with sales of activities, highlighting investors’ attention amidst sustained weakness in prices.
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This increase reflects growing concern among retailers who fear a deeper decline. The rising exchange supply highlights bearish sentiment in the short term, suggesting that many investors are retracting their positions as XRP struggles to maintain its upward momentum.
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Despite rising exchange balances, long-term holders are intervening to provide stability. Changes in Hodler’s net position indicate accumulation, with large holders buying XRP at current levels. This reflects the strong faith among committed investors in the ultimate recovery of the token.
Their purchasing activities are important to maintain market balance. By absorbing sales pressure, these holders create a support layer that can prevent XRP from dropping further. Their beliefs reflect the broader belief in the usefulness of XRP and the long-term outlook despite short-term volatility.
XRP prices fear autumn
At the time of writing, XRP traded for $2.84 and remains trapped at $2.85 under resistance. Prices struggle to consolidate within a narrow range between $2.85 and $2.73.
Given the current dynamics, XRP could continue to move laterally. The market situation needs to be critically bullish as Altcoin beats $2.85 and attempts to move towards $2.95 in the short term.
However, if long-term holder support is weak, XRP is at even more negative risk. We were unable to maintain $2.73 in support, so we lowered the price and pushed it up to $2.64. This will invalidate bullish papers and open the door to extended decline.
