XRP Price Drops 18% in Two Weeks as Long-Term Holders Sell: What’s Next?
The cryptocurrency market has been turbulent in recent weeks, and XRP has not been immune. The digital asset has seen an 18% price decline over the past two weeks, struggling to regain upward momentum as long-term holders (LTHs) offload their holdings. This trend raises concerns about investor confidence and XRP’s ability to stage a recovery.
Long-Term Holders Drive Selling Pressure
A key factor behind XRP’s recent downturn is the increased activity among long-term holders. The "Age Consumed" metric, which tracks the movement of older coins, has spiked to its highest level in over four months. This suggests that investors who have held XRP for an extended period are liquidating their positions, possibly due to frustration over the asset’s lack of price growth.
With bearish sentiment dominating the market, these sales further pressure XRP’s price. Historically, when seasoned investors begin selling in large volumes, it signals declining confidence, leading to increased market hesitation.
New Investor Interest Weakens
Adding to XRP’s struggles, the number of new addresses entering the network has dropped to a five-month low. This decline indicates waning enthusiasm from potential investors, who may be reluctant to enter a market experiencing sustained downward pressure.
The combination of reduced new address activity and heightened selling from LTHs paints a challenging picture for XRP. Without fresh capital flowing into the asset, recovery efforts could be significantly hindered.
Key Price Levels to Watch
As of now, XRP is holding at $2.06, hovering just above a critical support level at $2.02. A successful defense of this level could provide a foundation for a rebound, especially if the price manages to break through the immediate resistance at $2.14.
However, if the bearish sentiment persists and XRP fails to hold above $2.02, the price could slip further to $1.94, extending its recent losses. On the flip side, a decisive move above $2.14 could set the stage for a climb toward $2.27. If XRP surpasses this threshold, it may invalidate the bearish outlook and spark renewed optimism among investors.