Whales offload 600 million XRP in one day. Long-term holder activity reaches 7 months’ height. The $2.27 resistance remains an important barrier for the next move.
XRP has risen from $1.94 to $2.24 in recent sessions. This is a 15% profit, indicating a short-term recovery in Ripple-related tokens. However, despite the increase, concerns are built up in its ability to retain or build this momentum.
XRP is currently trading at $2.24, but its price has fallen 2.15% over the past 24 hours.
Analysts tracking blockchain data say large holders have begun offloading positions.
Blockchain data shows that within 24 hours this week, between 100 million and 1 billion XRP offloaded more than 600 million tokens, reducing the collective balance to 7.7 billion XRP.
The tokens on sale are valued at a stand of over $1.2 billion. This sales activity shows a growing uncertainty among large investors, also known as whales.
Long term holders are weak
One important indicator of market conviction is the “age consumed” metric, which measures long token activity. This week, that metric has skyrocketed to a seven-month height, indicating an increase in long-term holders (LTHS) sales.
These LTH are often seen as stabilizing forces in the market, and the decision to reduce exposure could suggest that confidence in the long-term trajectory of XRP is diminished.
The magnitude of this shift is noteworthy as LTH typically refrains from selling during the volatile period. Their decision to do this introduces an added downside risk, putting even more pressure on price stability.
If longer XRP enters the circulation, sales pressure can outweigh buyer demand, leading to a potential setback.
The price is $2.27 and faces strong resistance
Currently, XRP is trading just below resistance levels, which has remained for more than a month. The $2.27 threshold has historically been an important barrier to tokens.
If XRP can’t break through this level, the next move is a return to support around $2.13.
If sellers continue to control, especially those who have dropped large holdings, the momentum needed to violate $2.27 may not be realized. Without a decisive push beyond this level, XRP risks losing its recent profits and returning to a more bearish trajectory.
However, breakouts above $2.27 could open the door to make more profits, especially if they support this level. If that scenario is unfolded, the next resistance for XRP could be $2.32, followed by $2.45.
However, with market sentiment currently mixed in, the odds of this bullish move remain uncertain.
Market outlook depends on whale sentiment
The XRP continues its upward trend or the reversal course will depend heavily on the actions of the biggest investors.
As whales continue to move out of positions, retail demand may not be sufficient to absorb supply, limiting the possibility of further price growth.
The future of Altcoin will depend on interaction with the $2.27 resistance zone. The obstacles here, combined with sustained sales pressure from long-term holders, could see XRP return to test support levels.
Meanwhile, sustained breakouts, while not low in the short term, provide the Bulls with an opportunity to regain control.
