XRP recently experienced a decline that wiped out the gains made earlier in the week. This drop, coupled with investor panic selling, has intensified market concerns.
However, despite these challenges, many traders appear unaffected by the recent developments and continue to focus on capitalizing on price rises.
XRP Investors Move To Sell
Over the last 24 hours, investors sold a significant 116.72 million XRP, worth more than $256 million. This panic sell-off stemmed from fears that the price would continue to fall, prompting traders to exit before facing further losses. The broad market correction contributed to this rush to sell as holders attempted to safeguard their profits.
This large-scale selling shows rising uncertainty among XRP holders, especially as the altcoin faces downward pressure. Although the market conditions are not favorable, traders appear to be acting out of fear rather than clear analysis. This uncertainty could result in more volatility in the coming days unless a recovery emerges.
XRP Balance On Exchanges. Source: Glassnode
Despite the bearish market and the selling from investors, XRP’s funding rate remains positive. This is a clear indication that there is still a group of traders confident in the cryptocurrency’s potential, even during a market dip. These traders are likely betting on the eventual price increase, showing their conviction in the long-term growth of XRP.
The ongoing positive funding rate suggests that many believe the downturn will be temporary. Their continued support, even amidst a market correction, highlights the potential for XRP to regain momentum. The fact that there is still buying interest signals that traders are focused on capitalizing on future price increases, potentially leading to a recovery.
XRP Funding Rate. Source: Coinglass XRP Price Decline Could Be Reversed
At the time of writing, XRP’s price is down 8% over the last four days, trading at $2.11. The altcoin is holding above the critical support of $2.08, though recent selling pressure could continue to weigh on the price.
A loss of the local support level of $2.08 could trigger a deeper decline for XRP. In this case, the altcoin might even test $2.00, marking a two-month low. Such a move would suggest continued weakness in the market, further worrying traders and investors about the future direction of XRP.
XRP Price Analysis. Source: TradingView
However, if XRP manages to hold above the $2.08 support, it could bounce back, just as it has in the past. A recovery past $2.13 would signal the possibility of a trend reversal, allowing XRP to rise towards $2.20 and potentially invalidate the bearish outlook.
