Altcoins News

Story: XRP Price Reversal Risk Grows Amid Weakening Investor Activity

By Pankaj K

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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.

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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.

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New wallet growth is often seen as a sign of strong retail interest and short-term price support.

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Another worrying trend is the behavior of long-term XRP holders, often referred to as "HODLers.

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According to on-chain metrics from Glassnode, the HODLer net position change for XRP turned negative for the first time in over a month.

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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.

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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.

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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.

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XRP’s price movement in the coming days will depend heavily on whether confidence can return to the market.

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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.

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For now, traders should remain cautious. The weakening investor momentum suggests that the recent rally may have run its course, at least temporarily.

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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.

The Currency Analytics

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