XRP’s recent rally attempts have been missing after Altcoin failed to break out of the downward wedge pattern. Cryptocurrency prices are currently stagnating, suggesting that whale activity will weaken confidence among large owners.
As XRP struggles to regain momentum, investors’ sentiment continues to weaken amidst sustained market uncertainty.
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XRP holders are for sale
The XRP whales have offloaded their holdings for the past few days, contributing to a slower price. Addresses holding 100,000-1 million XRPs have sold over 100 million tokens in just 10 days, indicating a marked decline in the convictions of major investors.
The $300 million sale marked Whale Holdings’ lowest level in nearly 34 months. Such a sharp decline in supply from large owners reflects hesitation about XRP’s short-term potential.
The decline in accumulation suggests that many whales are seeking safety and are predicting further price corrections.
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On-chain data reinforces this bearish trend. Realized profit/loss ratios have skyrocketed to two months high, indicating that investors are taking on strength rather than accumulating.
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The spike suggests that market participants are taking advantage of recent increases, and expects limited rise in the short term.
The rising proportions also highlight outstanding bearish feelings. By making profits, the XRP market structure appears to be fragile. Unless renewed purchasing pressure is occurring soon, continuous sales could maintain downward pressure on token prices and delay critical recovery attempts.
XRP Price Fails Breakout
At the time of writing, XRP is trading at $2.94 and is trying to hold this level as a support floor. The drop followed a failed breakout from the downward wedge. Altcoin initially showed signs of potential bullish continuation, but ultimately lacked momentum to keep it up.
Given current conditions, XRP could face additional drawback pressures. A continuous decline could result in the token being sent below $2.85 if bearish feelings continue. Such moves could potentially be sold further among short-term traders.
However, improving the overall market situation could revive optimism. If your XRP violates $3.12, you can target $3.27 in the short term. A confirmed breakout could trigger a 19% rally, sending the price to $3.61, and invalidating bearish papers.
