XRP Sell-Off Nears $500 Million, Core Holders Offer Support

XRP is under pressure after its recent decline, with the altcoin now trading at $2.85. Investor skepticism is fueling a wave of selling.

However, a critical group of long-term holders continues to accumulate, offering much-needed support to the embattled cryptocurrency.

XRP Investors Switch To Selling

Exchange balances of XRP have surged sharply over the past week. Data shows that nearly 170 million XRP, valued at about $483 million, have been moved to exchanges. Such inflows are often linked to selling activity, highlighting investor caution amid persistent price weakness.

Sponsored

Sponsored

This increase reflects growing concerns among retail traders who fear deeper declines. The heightened exchange supply highlights bearish sentiment in the short term, suggesting many investors are exiting their positions as XRP struggles to maintain upward momentum.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Despite the rising exchange balances, long-term holders are stepping in to provide stability. The HODLer net position change shows accumulation, with large holders purchasing XRP at current levels. This reflects strong faith among committed investors in the token’s eventual recovery.

Their buying activity is critical for maintaining market balance. By absorbing selling pressure, these holders create a support layer that could prevent XRP from falling further. Their conviction reflects a broader belief in XRP’s utility and long-term prospects despite short-term volatility.

XRP Price Fears A Fall

At the time of writing, XRP trades at $2.84, remaining trapped below resistance at $2.85. The price has struggled to break higher, consolidating within a narrow range between $2.85 and $2.73.

Given the current dynamics, XRP will likely continue its sideways movement. Market conditions would need to turn decisively bullish for the altcoin to break $2.85 and attempt a move toward $2.95 in the near term.

If long-term holder support weakens, however, XRP risks further downside. A failure to maintain $2.73 as support could push the price lower to $2.64, which would invalidate the bullish thesis and open the door to extended declines.