As the crypto market completes a year of high tension, XRP begins a sharp turnaround. After riding a wave of optimism fueled by institutional flows and regulatory hopes, Ripple's assets are experiencing growing selling pressure. The reversal is clear, the technical signals are turning red, and investor sentiment is changing. This decline could well mark a new chapter in the trajectory of one of the most scrutinized tokens on the market.
In brief
- XRP has fallen almost 50% since its cycle peak, falling below the symbolic threshold of $2.
- Selling pressure is intensifying, fueled by a sudden change in investor behavior.
- On-chain data indicates a clear transition between accumulation and distribution in the XRP market.
- In the absence of a strong rebound, XRP could continue its fall towards the $1.50 zone, the former demand point.
Sales pressure fueled by on-chain behavior
The trigger for this corrective phase finds its origin in a market dynamic now largely oriented towards the exit, while the volume of XRP is falling sharply.
Thus, the analyst Darkfost estimated that “selling pressure on XRP has intensified significantly in recent weeks”. This observation does not arise from a simple temporary volatility, but from a deeper structural phenomenon. According to the latter, XRP has plunged almost 50% since its cycle peak near $3.66, to currently move in a critical zone around $1.85.
This reversal can be explained by massive movements of assets towards exchange platforms, signs of a clear desire to sell. Analysis of data from CryptoQuant shows that holders, particularly the oldest, adopt a defensive posture.
Several encrypted elements confirm this transition to distribution:
- Binance, the leading platform in volume on XRP, has seen its inflows explode since December 15;
- Daily transfers of 35 million XRP were seen, culminating in a peak of 116 million XRP sent to Binance on December 19;
- This dynamic contrasts with the period of accumulation and stability observed in October and November;
- According to Darkfost, this movement is fueled by a combination of profit-taking by incumbent crypto investors and capitulation by new entrants positioned higher in the cycle.
This on-chain data leaves little room for doubt. Holders seek to exit positions, sometimes even at a loss. This trend reinforces the selling pressure, and makes any attempt at a rebound more difficult to sustain.
A disparity of flows and concentration of supply
Beyond the behavioral dimension, the price of XRP reveals a particularly degraded technical structure.
Over the last few days, the asset has moved below all of its major moving averages, which reflects a clear imbalance in favor of sellers. Indeed, the price's rejection into the $3.00-$3.50 area marked the breakout point, initiating a sequence of lower and lower highs and lows. Today, XRP is oscillating between $1.87 and $1.90, in an area where rebound attempts remain timid.
The threshold of $1.80 to $1.85 now constitutes a critical support that has been tested several times, without buyers being able to regain the upper hand. The weakness of demand in this area raises questions about the ability of XRP to stop its fall.
Without a significant slowdown in deposits on the platforms, conditions remain unfavorable for an accumulation phase. Clearly, as long as sellers maintain the initiative, the probability of a decline towards the $1.50 zone, identified as a former support point, remains very real.
Under tension, but still closely monitored, XRP remains at the heart of speculation. Despite the current turbulence, certain technical scenarios reveal potential for a rebound. If conditions align, XRP could aim for $4, an ambitious goal for crypto, but symbolic for an asset whose trajectory remains closely linked to market dynamics.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
