XRP’s price recently faced significant pressure after investors sold nearly $950 million worth of tokens in just one week. The altcoin, which briefly tested its upper resistance levels, failed to sustain a bullish breakout, leaving traders cautious about the short-term outlook.

Data shows that over 320 million XRP moved to exchanges during this period, suggesting that long-term holders and short-term traders alike are cashing in profits. The wave of selling has introduced bearish momentum, creating challenges for sustained upward movement in the market.

Long-Term Holders Exit

The recent activity indicates that even long-term holders (LTHs) are selling their positions. Metrics such as Age Consumed, which track the movement of long-held coins, recorded a notable spike. Historically, LTH selling is a key indicator of declining confidence, as these investors often stabilize price and market sentiment.

“The exit of experienced holders is particularly concerning,” said a crypto analyst. “When long-term investors liquidate, it discourages new participants and amplifies short-term price pressure.”

This trend has reinforced negative sentiment, making recovery more difficult unless new buying interest enters the market.

XRP Balance on Exchanges Signals Risk

The sharp increase in XRP balances on exchanges is another warning sign. As more tokens are deposited for sale, the supply available for trading rises, increasing the likelihood of downward price movements. This heightened selling pressure can hinder recovery efforts, especially if it coincides with weaker market sentiment across other major cryptocurrencies.

Glassnode data indicates that the surge in exchange balances aligns with the recent failed breakout attempt, suggesting that traders were quick to capitalize on minor gains rather than holding for longer-term growth.

Price Support Levels and Potential Recovery

At the time of writing, XRP is trading at $2.96, just above the crucial $2.94 support level. Analysts note that maintaining this support is critical to avoid further declines. If the selling trend continues, XRP could slide toward $2.85 or lower, potentially testing the $2.75 level at the bottom of its descending wedge pattern.

Conversely, a rebound above $3.02 could open the path to $3.12 or higher, providing relief to bulls and potentially invalidating the current bearish trend. The market’s reaction in the coming days will be decisive in determining whether XRP can regain momentum.

Market Sentiment Remains Cautious

Investor sentiment is currently cautious as the failed breakout has dampened expectations for short-term gains. While the altcoin has significant support around $2.94, the combination of long-term holder sales and increased exchange supply keeps the market skewed toward sellers.

Traders are advised to monitor both support and resistance levels closely, as sudden shifts in buying or selling pressure could significantly impact XRP’s price trajectory in the near term.

Outlook for XRP

XRP’s immediate outlook depends largely on investor confidence. If long-term holders and institutional participants reduce selling activity, the market could stabilize, allowing the token to attempt another breakout. On the other hand, continued offloading of tokens could push prices toward lower support zones, reinforcing bearish momentum.

The week’s $950 million in sales serves as a reminder that even well-established cryptocurrencies can experience sharp corrections when holders opt to realize profits. Traders and investors alike are now watching closely to see whether XRP can regain stability and set the stage for a potential rebound.