[Analysis] "XRP, selling pressure intensifies…likelihood of a continued correction phase ↑"

Selling pressure on XRP has intensified, making a continued correction phase more likely than a short-term rebound.

On the 29th (local time), CryptoQuant contributor Darkfost said, "XRP's price fell from around the peak of about $3.66 to around $1.85, recording a correction of about 50%," adding, "In this process, the inflow of XRP to Binance suggests an expansion of selling pressure."

According to Binance, XRP inflows had remained relatively stable for a while, but flows changed sharply starting on December 15. After that, daily inflows surged from at least 35 million XRP to as much as 116 million XRP, and on December 19 they recorded a short-term peak. An increase in exchange inflows is typically interpreted as preparation for spot selling or for managing derivative positions.

This change suggests a shift in investor sentiment. Unlike many investors who had maintained a holding strategy since October, analyses indicate that over the past two weeks profit-taking on existing holdings and stop-loss selling by relatively recent entrants have occurred simultaneously. Selling factors overlapped among long-term holders and short-term participants, increasing supply pressure.

Darkfost forecasted, "If exchange inflows remain at high levels or expand further, it will be difficult for XRP to transition into a meaningful accumulation phase." They assessed that unless selling pressure is resolved, this correction leaves open the possibility of further downside both in terms of duration and price.