XRP Price: More Pain Ahead?

What to Know:

• XRP is experiencing a price decline, currently trading below $2.30 after failing to maintain momentum above $2.40.
• Long-term XRP holders are showing a shift in behavior, realizing profits during price declines rather than rallies, indicating potential distribution into weakness.
• Despite positive developments in the ETF landscape, with potential launches on the horizon, whales and long-term holders may be adopting a “buy-the-rumor, sell-the-news” strategy.

XRP is currently facing downward pressure, with a nearly 10% weekly decline reflecting investor sentiment. After failing to sustain momentum above $2.40, the digital asset now struggles below $2.30. The behavior of whales and long-term holders is raising concerns about XRP’s potential in the coming weeks.

Glassnode data reveals a divergence from past trends, as XRP holders are now realizing profits during price declines rather than rallies. Since late September, as XRP fell from $3.09 to $2.30, profit realization volume surged by approximately 240%. This shift suggests a distribution into weakness rather than strength, diverging from previous patterns.

Unlike previous profit realization waves that aligned with rallies, since late September, as XRP fell from $3.09 (~25%) to $2.30, profit realization volume (7D-SMA) surged by ~240%, from $65M/day to $220M/day.

This divergence underscores distribution into weakness, not strength.… https://t.co/PUURD4knVZ pic.twitter.com/jMWj3mF0Td

Recent reports indicate significant whale activity, with substantial amounts of XRP being offloaded. The timing is particularly noteworthy given the positive developments in the ETF space. Several companies have updated their S-1 filings with the U.S. SEC to remove “delayment amendments,” paving the way for potential ETF launches.

The first ETF with a chance of launching is Canary Capital’s application, potentially as early as this week. The actions of whales and long-term holders could reflect a “buy-the-rumor, sell-the-news” approach. They may anticipate a price drop in XRP once the ETFs are officially launched.

As XRP navigates market dynamics, it’s crucial to monitor whale activity, ETF developments, and regulatory landscapes. These factors will likely influence its trajectory in the coming months. Investors should remain vigilant and adapt their strategies accordingly.

Related: XRP Price: $12M Max Pain for Bears

Source: Original article