During the latest altcoin rally led by Ethereum, XRP reached a new ATH. Although this new ATH boosted optimistic sentiment, XRP fell below $3 amid a broader market downturn.
Assessing the decline and selling pressure of XRP, the CryptoQuant analyst stated that he predicts the structural weakness of XRP will continue as selling pressure increases.
The Enigma Trader analyst from CryptoQuant recently predicted that the structural weakness of the market is likely to continue due to increasing selling pressure from Ripple (XRP) whale investors.
According to the analyst, the whale wallet XRP money flow indicator is said to have turned "strongly negative."
The analyst notes that outflows from large wallets have been observed, similar to patterns seen before past price corrections, and this situation increases the risk of a price correction occurring.
"The 90-day moving average money flow of whales in XRP has turned negative, indicating that new money is flowing out from large wallet addresses.
A similar pattern was observed during the period from January to February. The formation of a short-term peak in XRP led to continuous selling by whales and the price subsequently fell back.
Finally, the analyst stated that unless the average daily net money flow of whales exceeds 5 million XRP, the market will show structural weakness and the likelihood of a positive reversal may be difficult.