Ripple (XRP) has recently witnessed a fall that erased all the gains made earlier in the week. Along with the wave of selling due to the panic sentiment of investors, this drop has heightened concerns in the market.
However, despite the current challenges, many traders seem unaffected by recent developments and continue to focus on leveraging upward price movements.
XRP investors are selling off en masse
In the last 24 hours, investors have sold a total of 116.72 million XRP, or more than $256 million. This panicked sell-off stemmed from fears that prices would continue to plunge, prompting many traders to rush to retreat before losing deeper. The market-wide correction also contributed to promoting the wave of selling as many holders tried to preserve the profits achieved.
This large-scale selling trend clearly reflects the increasing level of instability within the XRP holder community, especially as this altcoin is under selling pressure. Although the current market conditions are not very positive, most of the traders' actions seem to stem from fear rather than clear analysis. Such instability may lead to stronger fluctuations in the coming days, unless the market recovers soon.
! XRP XRP balance on exchanges | Source: GlassnodeDespite the bearish market and selling pressure from investors, XRP's funding rate remains positive. This shows that there is still a part of traders who remain confident in the potential of this coin, even in times of market correction. Those traders are more likely to be betting on a future bull run, expressing confidence in XRP's long-term prospects.
The funding rate remaining in the positive zone is a signal that many believe that the current decline is only temporary. Their continued support for XRP, even as the market is in a correction phase, demonstrates the possibility that XRP may soon regain its upward momentum. In fact, there is still buying power, which means that traders are looking to take advantage of the upcoming rallies – a factor that could contribute to triggering a recovery in the near future.
The funding rate of XRP | Source: Coinglass## The downtrend of XRP may reverse
At the time of writing, the price of XRP has fallen 8% over the past four days, currently trading around $2.15. This altcoin is still holding above the important support level of $2.08, although recent selling pressure may continue to weigh on the price.
If it loses the support level of $2.08, XRP could fall deeper. In this scenario, the price may retreat to test the $2 level – the lowest in the past two months. Such a development would indicate a continuing weakening trend in the market, raising concerns among traders and investors about the upcoming direction of XRP.
XRP price chart | Source: TradingViewHowever, if XRP holds above the support level of $2.08, it could recover – just like it has in the past. If the price stays above the $2.13 mark, that could signal a trend reversal, opening up the opportunity for XRP to rise to the $2.20 area and even invalidate the current bearish outlook.
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XRP sold off 256 million dollars, but the funding rate is still green – A bullish sign?
Ripple (XRP) has recently witnessed a fall that erased all the gains made earlier in the week. Along with the wave of selling due to the panic sentiment of investors, this drop has heightened concerns in the market.
However, despite the current challenges, many traders seem unaffected by recent developments and continue to focus on leveraging upward price movements.
XRP investors are selling off en masse
In the last 24 hours, investors have sold a total of 116.72 million XRP, or more than $256 million. This panicked sell-off stemmed from fears that prices would continue to plunge, prompting many traders to rush to retreat before losing deeper. The market-wide correction also contributed to promoting the wave of selling as many holders tried to preserve the profits achieved.
This large-scale selling trend clearly reflects the increasing level of instability within the XRP holder community, especially as this altcoin is under selling pressure. Although the current market conditions are not very positive, most of the traders' actions seem to stem from fear rather than clear analysis. Such instability may lead to stronger fluctuations in the coming days, unless the market recovers soon.
! XRP XRP balance on exchanges | Source: GlassnodeDespite the bearish market and selling pressure from investors, XRP's funding rate remains positive. This shows that there is still a part of traders who remain confident in the potential of this coin, even in times of market correction. Those traders are more likely to be betting on a future bull run, expressing confidence in XRP's long-term prospects.
The funding rate remaining in the positive zone is a signal that many believe that the current decline is only temporary. Their continued support for XRP, even as the market is in a correction phase, demonstrates the possibility that XRP may soon regain its upward momentum. In fact, there is still buying power, which means that traders are looking to take advantage of the upcoming rallies – a factor that could contribute to triggering a recovery in the near future.
At the time of writing, the price of XRP has fallen 8% over the past four days, currently trading around $2.15. This altcoin is still holding above the important support level of $2.08, although recent selling pressure may continue to weigh on the price.
If it loses the support level of $2.08, XRP could fall deeper. In this scenario, the price may retreat to test the $2 level – the lowest in the past two months. Such a development would indicate a continuing weakening trend in the market, raising concerns among traders and investors about the upcoming direction of XRP.
Minh Anh