XRP has recently declined slightly, losing support at $3. This altcoin is currently struggling to recover that level.
The next recovery stage heavily depends on investor sentiment. Their behavior could determine whether XRP continues to struggle or rebounds.
XRP Investors Selling
Chaikin Money Flow (CMF) has shown a sharp decline. This indicates decreasing investor confidence. The decline suggests investors are withdrawing funds from XRP, reflecting growing skepticism about the altcoin's price trajectory. The sharp CMF decline is concerning. It implies that fund outflows may continue without a change in sentiment.
These doubts are contributing to recent downward pressure on XRP's price. As fund outflows continue to increase, it becomes more difficult for XRP to recover key levels, which could lead to further declines.
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XRP's long-term outlook is also affected by HODLer net position changes, which have reached a seven-month low. This indicator suggests that long-term holders (LTH) are also selling, contributing to the downward trend. The consistent LTH selling since mid-July has intensified in recent days, increasing downward pressure on XRP's price.
The position of LTH, which significantly impacts XRP's price, is decreasing. These continued selling actions are building a downward sentiment across the broader holder base. As these influential holders reduce their positions, other investors might follow, potentially driving the price further down.
XRP Price Needs Support Recovery
XRP is currently trading at $2.92, just below the $2.95 resistance. The bearish market sentiment and fund outflows make it difficult for the altcoin to break through this resistance. If the current trend continues, additional downward price pressure may occur.
XRP is likely to test the $2.65 support in the coming days unless investors change their sentiment. If this support level is not maintained, XRP could experience further losses, potentially adding additional burden to the altcoin and its investors.
For XRP to recover, it needs to reclaim $2.95 as support and break through $3.00. Successfully breaking these levels could lead to an XRP price recovery to $3.41, invalidating the current bearish outlook and providing hope for a potential recovery.
