Summary
- BeInCrypto reported that XRP's selling pressure decreased by about 39% over the past week.
- They analyzed that concentrated buy positions in the $1.96~$1.97 range could lead to additional selling pressure being released until the resistance is broken.
- They said that if the $1.96 resistance fails to be broken, a corrective phase could repeat, and conversely, breaching the $1.76 support would carry additional downside risk.
XRP is showing signs of easing short-term selling pressure, but analysts warned that downside risk could expand again if it fails to clear key resistance areas.
On the 19th, according to crypto media BeInCrypto, XRP's price has fallen about 16% over the past month and remains weak in the medium-to-long term. However, technical indicators and on-chain data have detected signals that selling pressure is gradually weakening.
On-chain indicators also support this. According to a metric that tracks changes in long-term holders' net positions, the daily net selling by long-term XRP holders peaked at about 216,900,000 XRP on December 11 and fell to about 132,200,000 XRP by the 18th. In one week, long-term holders' selling pressure decreased by about 39%.
This indicates that the amount of sell-side supply entering the market has noticeably declined, but some interpret that this does not indicate an immediate trend reversal.
The key is the upper resistance zone. On-chain cost-basis distribution data show a supply concentration where roughly 1,820,000,000 XRP was bought in the $1.96~$1.97 range. Since that price level corresponds to many investors' breakeven points, approaching it could lead to sell orders being released again.
Previously, XRP failed several times to rebound near $1.96. Even if a short-term rebound continues, if it does not clearly rise above that zone on the daily chart, the same corrective phase may repeat. On the downside, $1.76 has been identified as a major support. If that zone is breached, selling pressure could intensify again and open the possibility of further declines.
The outlet said, "Although XRP's selling pressure has clearly eased and momentum indicators have improved, until the $1.96 resistance is broken, the market remains trapped between supply burden and weakened buying power."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
