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XRP recently hit a new all-time high (ATH) of $3.66, driven by a strong market-wide rally and increased investor optimism. The cryptocurrency surged by 27% in just one week, reaching $3.50 at the time of writing. However, this impressive run may be losing steam as signs of a possible reversal begin to emerge.
The enthusiasm that helped propel XRP to its recent peak appears to be cooling off. A major reason for concern is the sharp drop in the number of new XRP investors. In just 48 hours, the number of newly created XRP wallets fell drastically from 11,058 to 3,930. This represents a 64% decline in new participants entering the market, suggesting that investor confidence in the ongoing rally is weakening.
New wallet growth is often seen as a sign of strong retail interest and short-term price support. When more wallets are created, it typically signals growing demand and fresh capital entering the ecosystem. But when that number suddenly drops, as it just has, it often points to a pause or possible end of a bullish phase. This shift in sentiment raises the risk that XRP could face a price correction in the coming days.
Another worrying trend is the behavior of long-term XRP holders, often referred to as “HODLers.” These investors are typically known for holding onto their assets through market ups and downs, providing a layer of price stability. However, recent data shows that even these seasoned investors have started to sell.
According to on-chain metrics from Glassnode, the HODLer net position change for XRP turned negative for the first time in over a month. This means that more long-term holders are now offloading their XRP than accumulating it. When long-term holders begin selling, it often indicates that they either see limited upside ahead or are taking profits while prices remain high.
This selling pressure from both new and long-term investors could cause XRP to lose critical support levels. The current support sits around $3.38. If XRP falls below this level, it could trigger a further decline toward $3.00, erasing much of the recent rally. The declining investor activity, combined with reduced buying interest, could strengthen the bearish outlook.
Despite these concerns, not all hope is lost for XRP bulls. The asset is still trading close to its ATH, and only needs a 4% price increase to retest the $3.66 mark. If buying interest returns—either from retail investors or institutional players—XRP could stabilize above the $3.38 support zone and attempt another breakout.
A successful move above the $3.66 resistance could push the price up to $3.80 or higher, setting a new ATH and invalidating the bearish scenario. In that case, the recent dip in new wallets and long-term selling could be viewed as a temporary shakeout rather than the start of a broader trend reversal.
XRP’s price movement in the coming days will depend heavily on whether confidence can return to the market. Investors will be watching closely to see if new wallet growth picks back up and if long-term holders resume accumulation. If those signs emerge, they could fuel renewed upward momentum.
Until then, XRP faces a crucial test. A failure to hold above $3.38 could lead to a deeper correction, especially if broader market sentiment turns negative. On the other hand, if the asset finds renewed demand and breaks past $3.66, it could signal the beginning of a new bullish phase.
For now, traders should remain cautious. The weakening investor momentum suggests that the recent rally may have run its course, at least temporarily. Monitoring on-chain data such as wallet growth, HODLer behavior, and trading volume will be key to predicting XRP’s next move.
Whether XRP rebounds or continues to slide will depend on market confidence. Long-term investors and new entrants alike will need to see compelling reasons to re-enter the market. Until then, XRP’s path forward remains uncertain, with both upside and downside risks in play.
