-
Recent trading activity reveals shifts in sentiment among XRP investors, as a rising sell pressure at Upbit underscores a potential bearish trend.
-
The latest data indicates that despite 81.6% of XRP’s supply remaining profitable, growing sell orders suggest many traders are looking to capitalize on recent price movements.
-
According to blockchain analytics firm Glassnode, this sell-off coincides with significant trading volume, reinforcing concerns over the sustainability of XRP’s current price levels.
The XRP market appears to be undergoing a potential bearish shift as sell pressure mounts, with 81.6% of supply still in profit, but trading sentiments lean negative.
Major Sell Pressure Emerges in XRP Trading
Recent reports highlight a significant uptick in selling activity among XRP traders, particularly on South Korean exchanges like Upbit and Bybit. The profit retention for XRP holders, although still impressive, is showing cracks as overall market sentiment tilts towards the bearish side. Notably, the reported sell orders surpassed 1.4 million, predominantly from Korean traders, who executed approximately 62% sell orders, resulting in a substantial outflow worth $120 million between April 6 and April 7. This behavior stands in stark contrast to earlier market patterns where Korean investors played a pivotal role in supporting XRP’s price trajectory.
Investor Sentiment and Market Dynamics
The reversal in sentiment is alarming to many market watchers. Following a substantial decline, XRP’s price briefly fell below the critical support level of $2 before managing to claw back to $2.10. However, many investors seem to view this as an opportunity to take profits, as the data from other assets further illustrates. For instance, TRON (TRX) outperformed XRP with 84.6% of its supply still profiting; Bitcoin (BTC) and Ethereum (ETH) lagged behind at 76.8% and 44.9%, respectively. Such dynamics could suggest that XRP’s recent struggles might not be isolated, reflecting broader trends within the cryptocurrency market.
Impacts of Whale Activity and Retail Trading
The pressure from long-term holders, often referred to as “whales,” selling significant portions of their XRP holdings has compounded the bearish sentiment. Reports of over $1 billion in positions liquidated at an average of $2.10 from these stakeholders raised alarms about retail confidence. Coupled with the findings from Cointelegraph, the outflow of capital raises critical questions about market stability and the potential for sustained recovery.
Technical Analysis: A Closer Look at XRP Price Levels
XRP is at an essential juncture in terms of technical price movements. The altcoin witnessed a drop to $1.61 on April 7—a dip that represents a new yearly low—before reclaiming important psychological support at $2. For many technical analysts, sustaining above this level is key; failure to do so could invite further declines. The ongoing analysis suggests that XRP may be gearing up for a further correction, especially if it closes below its 200-day moving average. Traders will closely monitor the key supply zone ranging from $1.63 to $1.27, where potential accumulation phases could occur.
Conclusion
In summary, while XRP displays a significant percentage of profitable supply, the increasing sell pressure indicates that many traders are reassessing their positions amidst rising fears of market correction. The balance of trading sentiment, alongside critical technical levels, will be crucial in determining XRP’s trajectory in the weeks ahead. For investors, keeping informed about market trends and trading behavior will be vital to navigate these uncertain waters efficiently.
