XRP has been struggling to maintain momentum in recent days and is closing in on the key support level at $2.00. The lack of growth has increased uncertainty among investors, especially as long-term holders (LTH) are likely to cause further downward pressure.
Although some investors are showing signs of renewed accumulation, the future direction of XRP remains uncertain as competing forces shape its next move.
XRP holders may sell
The Long Term Holders Net Unrealized Gains and Losses (LTH NUPL) indicator is approaching a key threshold of 0.5, suggesting potential weakness. Historically, declines below this level have coincided with significant price corrections as investors rush to lock in remaining profits. If the index falls further, selling pressure could increase across the market.
Sponsored Sponsored
This change could lead to a self-fulfilling decline as profit-taking by veteran holders creates additional supply. Such selling behavior could push down the XRP price, erase short-term gains, and further erode investor confidence.
On the other hand, there are some positive signs from the currency data. Over the past week, investors have withdrawn more than 140 million XRP (worth about $309 million) from the exchange. This accumulation reflects new confidence among buyers and could act as a buffer against large-scale selling by long-term holders.
However, this buying trend will need to continue for XRP to maintain its price level and recover from the current pressure. Without sufficient accumulation, the overall market may struggle to resist a potential decline, limiting XRP’s ability to stabilize or recover lost ground.
XRP price is falling
At the time of writing, XRP price is $2.21, trading below the major resistance level at $2.27. If long-term holders start selling aggressively, the altcoin could fall towards $2.00, a 9% drop from current levels.
To fall to $2.00, XRP would need to break through the support at $2.13 and $2.02, both of which are important levels for short-term stability. If these cannot be maintained, altcoin losses may accelerate.
However, if investor sentiment strengthens, XRP could rebound above $2.27 and aim for $2.35. A decisive break above $2.54 would confirm a recovery, invalidate the current bearish outlook, and signal new bullish control.
