XRP Price Likely to Reversal After Selling $2.81 Billion in 7 Days

XRP recently reached a new All-Time-High before entering a sideways accumulation phase. This cryptocurrency has struggled to break through resistance levels but has also avoided a major correction.

However, this balance may not last long as investor behavior shows changes in momentum.

XRP Investors Lack Confidence

Investors have started selling large amounts of XRP, indicating a decrease in confidence in further price increases. In the past week, exchange wallets have seen an inflow of nearly 450 million XRP, valued at over $2.81 billion. This supply increase suggests investors are moving their assets to sell, typically a bearish indicator in market cycles.

Quick profit-taking seems to be driven by concerns that XRP has reached a short-term peak. As investors move to protect their profits, pressure on XRP prices increases. If selling continues to rise, it could lead to prices dropping below immediate support levels, making recovery more difficult.

On-chain data further confirms the bearish sentiment. Liveliness, a metric used to track long-term holder (LTH) behavior, is currently at its three-month high. This indicates that LTHs, typically known for their steadiness and market influence, are now selling XRP.

The change in their behavior is a strong indicator of potential downward price pressure.

History shows that increases in Liveliness often precede market corrections. As LTHs hold a large portion of the supply, their decisions significantly impact price trends. The increase in Liveliness reflects a broader shift in market outlook, aligning with the recent increase in exchange supply and the overall decline in optimistic sentiment.

Can XRP Reach a New ATH?

XRP is currently trading at $3.48, just 4.8% away from its All-Time-High. Despite being close, this altcoin is showing weak signs and clinging to the $3.38 support level. Without new buying interest, this support may not hold for long.

If investor selling continues, XRP could drop below $3.38 and test the $3.00 support. Falling to this level would erase recent gains and confirm a short-term price reversal. Losing the $3.00 mark could signal a longer accumulation phase or deeper correction.

However, if market participants absorb the sold supply and restore demand, XRP could quickly recover. In this scenario, the altcoin might surpass $3.66, break $3.80, and target $4.00. Such a move would nullify the bearish outlook, and XRP could create a new All-Time-High.