XRP remains under pressure as its month-long downward trend continues, pushing the altcoin closer to the crucial $2 level. Earlier this month, XRP attempted to break out of this falling pattern, but was unable to maintain momentum.
Adding to this pressure are investors who are currently selling. So, the question now is whether the heightened expectations surrounding a potential XRP ETF approval will help prevent further declines.
XRP investors are selling
As prices continue to fall, XRP exchange net position data shows the first confirmed inflows in more than a month. After weeks of declining outflows, funds have been returning to exchanges in the past 24 hours, providing a sell signal. This change is notable because inflows typically reflect weakening investor confidence and a renewed interest in selling during periods of uncertainty or weakness.
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This 30-day trend reversal highlights the deterioration in sentiment among XRP holders. Rather than buying on weakness, investors appear to be preparing for a potential downside by selling their holdings. The change from steady outflows to early inflows is bearish and indicates weakening short-term support.
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Meanwhile, whale activity is attempting to offset the overall selling effect, indicating confidence in XRP’s recovery potential. Addresses holding 10 million to 100 million XRP have accumulated an additional 1.1 billion XRP over the past week. This brings their total holdings to 9.74 billion XRP, an increase of $2.36 billion at the current valuation.
This aggressive accumulation by large holders indicates continued optimism about long-term price performance. Whales are considered the most influential group in the crypto market, and their buying activity tends to cause widespread sentiment.
XRP price may not correct
XRP is trading at $2.14 and is currently relying on major support at the same level. The asset has been locked in a downtrend for nearly a month and has been unable to break out despite periodic attempts. Without an external catalyst, XRP risks falling as bearish momentum continues.
However, as the likelihood of ETF approval increases, XRP may avoid further declines. Bloomberg ETF analyst Eric Balchunas said the SEC is likely to issue guidance that will allow issuers to improve filing efficiency and clear regulatory logjams. Bitwise’s XRP ETF is reportedly next in line, and any progress could quickly improve market sentiment.
If the bullish momentum continues and ETF expectations grow, XRP could rise to $2.28 and then $2.36, breaking the downtrend. However, if investors sell more or the ETF decision is delayed, XRP could fall again, dropping 6.8% to $2.00. If that happens, the bullish theory will be invalidated.
