XRP has surged to a weekly high of $3.50, gaining over 27% in the past seven days and nearing its all-time high of $3.66. This impressive rally was supported by a broader market surge and renewed investor interest. However, warning signs now indicate that this bullish momentum may be weakening.
New XRP Investors Retreat After ATH Surge
According to the latest on-chain data, the number of new XRP investors has fallen dramatically in the past 48 hours, from 11,058 down to just 3,930. This steep drop in new wallet creation signals declining interest from short-term traders who had contributed significantly to the recent rally.
This pattern is typical after a strong price increase, where momentum investors pause or exit positions in anticipation of a correction. Their absence often weakens buying pressure, making the asset vulnerable to pullbacks.
Long-Term Holders Begin Profit-Taking
Adding to the bearish pressure, XRP’s HODLer Net Position Change metric has turned red for the first time in over a month. This means that long-term holders (LTHs), who typically provide price stability, have started selling their positions.
Historically, when LTHs begin distributing holdings, it reflects either reduced confidence in continued upside or a calculated move to lock in profits near price peaks. This behavior from experienced investors may accelerate downward pressure on XRP if it persists.
XRP Support and Resistance Levels to Watch
Currently priced at $3.50, XRP is just 4% away from retesting its ATH of $3.66. However, if the current trend of selling continues, XRP could fall below the key support level of $3.38. A break below this zone might push the altcoin further down to $3.00, effectively wiping out most of its recent gains.
On the contrary, if market sentiment shifts positively and accumulation resumes, XRP could bounce back, reclaiming $3.66 and potentially reaching a new high at $3.80. The next few trading sessions will be crucial in determining whether the asset can sustain its rally or enter a consolidation phase.
Outlook: Volatility Ahead for XRP
While XRP remains in a favorable position from a technical standpoint, investor behavior is showing early signs of fatigue. A mix of cautious new entrants and profit-taking by long-term holders could lead to short-term volatility. Traders should watch price action around the $3.38 support and $3.66 resistance for clearer direction.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
