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XRP has experienced a notable decline in recent weeks, losing nearly 10% since mid-August. This downturn has created a divergence in investor behavior, with short-term and mid-term holders seizing the opportunity to accumulate while long-term holders increasingly sell, putting downward pressure on the token’s price.
Short-Term and Mid-Term Buyers See a Dip as Opportunity
On-chain data reveals that newer investors have been actively increasing their XRP holdings during the recent dip. According to Glassnode, the HODL Waves metric, which tracks how long coins have been held, indicates rising participation among shorter-term investors.
Short-term holders—those who have held XRP for one to three months—now control 9.51% of the circulating supply, up 8% since August 14. Mid-term holders, in the six to twelve-month cohort, have also increased their positions, now controlling 23.19% of XRP’s circulating supply, marking the highest level for this group so far in 2025.
This accumulation pattern reflects confidence among these buyers that XRP could rebound in the near term. Many traders see the dip as a potential entry point, betting on a price recovery toward the $3 mark or higher.
Long-Term Holders Add Selling Pressure
In contrast, long-term holders (LTHs) have been moving XRP off exchanges, contributing to increased sell pressure. XRP’s Liveliness metric, which measures the activity of long-held tokens, has climbed steadily since August 19, signaling that dormant coins are being sold.
When LTHs sell, it often offsets accumulation by shorter-term holders, making the token’s recovery more challenging. Analysts suggest that XRP’s ability to regain momentum will depend on whether new demand from short- and mid-term holders can surpass the selling volume from seasoned investors.
Technical Analysis Points to Key Price Levels
XRP’s short-term price action shows the token fluctuating between support at $2.63 and resistance near $3.22. A rebound above $3 could indicate renewed bullish sentiment, potentially leading to further gains toward $3.22. Conversely, if sell-offs from long-term holders intensify, XRP could extend its decline, retesting the $2.63 support level.
The divergence in investor behavior underscores the importance of closely monitoring on-chain metrics alongside technical indicators. Traders are advised to track HODL Waves, Liveliness, and trading volume to gauge the strength of accumulation versus selling pressure.
Market Context and Broader Implications
XRP’s struggles are not occurring in isolation. The broader cryptocurrency market has experienced volatility in recent weeks, affecting investor sentiment across major altcoins. While Bitcoin and Ethereum have stabilized to some extent, XRP’s recovery has been slower due to a combination of selling pressure from long-term holders and uncertainty surrounding market trends.
Despite these challenges, XRP maintains fundamental strengths. The Ripple network continues to support cross-border payments and enterprise adoption, which could underpin long-term growth. Additionally, XRP’s liquidity and active on-chain transactions suggest the token retains strong market relevance, even amid short-term volatility.
Balancing Accumulation and Selling Pressure
The current dynamics highlight a critical tension in XRP’s market: the optimism of short- and mid-term buyers versus the profit-taking behavior of long-term holders. Analysts believe that for a sustainable recovery, demand from newer investors must consistently outweigh the selling from seasoned participants.
Investors should be prepared for potential volatility in the coming days. A clear upward move above key resistance levels could validate the bullish accumulation trend, while failure to hold support may lead to further declines.
Key Takeaways for XRP Investors
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Short-term holders are actively accumulating XRP during the recent dip.
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Mid-term holders have increased their share of circulating supply to record levels.
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Long-term holders are selling, as reflected in rising Liveliness metrics.
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XRP’s recovery depends on whether new accumulation can offset selling pressure.
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Technical support and resistance levels are $2.63 and $3.22, respectively.
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On-chain metrics and trading volume should guide near-term investment decisions.
As the cryptocurrency market continues to navigate a volatile environment, XRP’s path will be determined by the balance between fresh accumulation and long-term distribution. Traders and investors must closely track both on-chain activity and broader market sentiment to anticipate potential price movements.
