XRP price is currently trading around $2.15 after falling more than 18% since November 10th. The token has been trading within a bearish channel for the past month. And the latest structure now shows decreasing volume, increasing long-term selling, and price positioning close to major support.
If buyers fail to defend one level, XRP price could slide deeper into the downtrend.
sponsored
Channel decline and volume breakdown reinforces bearish setup
XRP continues to move within the descending channel that has led to all the bounces and rejections for over a month. This pattern is a bearish continuation structure, with recent candlesticks indicating each recovery attempt is weakening.
This weakness is most apparent with the On-Balance Volume (OBV) indicator. OBV adds volume on green days and subtracts volume on red days to indicate whether buying or selling pressure is predominant. From November 4th to November 9th, OBV briefly rose above the downtrend line connecting the lower highs. XRP price rebounded quickly in a short period of time.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
However, the mood changed when OBV fell below the trend line on November 12th. Since then, the indicator has remained below that trend line, indicating that overall market buying pressure continues to weaken. This is completely consistent with the price trend. XRP began its 18.6% decline on November 10th, the same period that OBV started to curve downwards again.
sponsored
Lack of volume power means buyers are not stepping in with confidence. This prepares the next metric.
Long-term holders are increasing their selling
Glassnode’s Hodler Net Position Change tracks the supply of long-term holders moving in and out of exchanges and wallets. This is one of the clearest measures of long-term convictions.
Over the past few days, long-term holders have sharply increased their selling again after falling to a two-week low on November 16th.
November 16: -63.57 million XRP November 18: -94.5 million XRP Sponsored
This is a 48.6% increase in long-term outflows in just two days.
This ensures that the pressure displayed on the OBV is not random noise. That’s happening at the same time as long-term holders are paring back their positions more aggressively. When long-term seller activity increases while volume declines, it usually indicates that the market has not yet found a bottom. And that view puts all nearby support levels at risk.
Both OBV and Hodler Net Position Change represent the same idea. This means that buyers are unable to absorb the increasing selling pressure.
sponsored
The most important XRP price levels
XRP price is currently located near the most important support on the chart at $2.10. This level served as a reaction zone many times within the descending channel. If the daily candlestick closes below $2.10, XRP could extend its move towards the lower end of the long-term channel at $1.77.
On the upside, the level that needs to be regained to override this bearish setup is $2.41. A clearing of $2.41 would indicate that buyers have regained momentum, paving the way for $2.58. The short-term trend reverses to the bullish direction only if the daily close price exceeds $2.58.
At the moment, the structure is still tilted towards the negative. The volume is low. Long-term holders are selling faster. And XRP price is still within the descending channel. Unless XRP regains $2.41, all eyes will be on $2.10. This fragile floor will determine whether XRP stabilizes or enters a deeper slide.
