XRP recently experienced a decline that wiped out profits that were made at the beginning of the week. This decline, coupled with investor panic sales, has strengthened market concerns.
However, despite these challenges, many traders appear to be unaffected by recent developments and continue to focus on exploiting price increases.
XRP investors move to sales
Over the past 24 hours, investors have sold XRP 116.72 million worth more than $256 million. This panic sale stems from fear that prices continue to fall, leading traders to come out before they face further losses. A wide range of market corrections contributed to this rush as holders tried to protect their profits.
This massive sales show an increasing uncertainty among XRP holders, particularly as Altcoin faces downward pressure. The market situation is unfavourable, but traders seem to be acting out of fear rather than a clear analysis. This uncertainty could result in more volatility in the coming days, unless recovery appears.
Despite sales from bear markets and investors, XRP’s funding rate remains positive. This clearly shows that even amid a decline in markets, there is still a group of traders who are confident in their cryptocurrency potential. These traders are likely betting on a final price increase, indicating their conviction for XRP’s long-term growth.
The continued positive funding rate suggests that many believe the recession is temporary. Even amid the market corrections, their continued support underscores the possibility that XRP will regain momentum. The fact that traders are still buying interest signals that they are focused on taking advantage of future price increases could potentially lead to a recovery.
XRP price drops could reverse
At the time of writing, XRP prices have fallen 8% over the past four days, trading at $2.11. While Altcoin has surpassed its significant $2.08 support, recent sales pressures could continue to strain prices.
A loss of local support level of $2.08 could cause a deeper reduction in XRP. In this case, Altcoin could test $2.00 and mark a two-month low. Such a move suggests a continuing weakness in the market and further worries traders and investors about the future direction of XRP.
However, if your XRP exceeds support above $2.08, it could bounce back just like it did in the past. A recovery above $2.13 indicates a potential trend reversal, with XRP rising to $2.20, potentially negating the bearish outlook.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
