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Ripple’s primary blockchain asset, XRP, recently faced resistance after a brief recovery at the $2.40 level, currently striving to hold below $2.30. Blockchain internal data suggests increasing price pressure in the coming days, indicating potential challenges ahead.
Long-Term Investors Alter Profit Strategies
According to data from blockchain analysis platform Glassnode, XRP investors are changing their behavior compared to previous cycles. Unlike the past when investors took profits during rises, such as during the all-time high in July or the $3.40 spike in January, recent weeks have seen a shift in trends. Long-term investors have gradually reduced their positions during the downward trend persisting since the end of September.
$2-XRP-Glassnode-Verileri-scaled.jpeg” alt=”” width=”2560″ height=”1440″ />Supporting this scenario are whale movements, with approximately 500,000 XRP transferred to exchanges in the last 48 hours. The intensity of these sales suggests that large investors are cautious about short-term price movements.
ETF Expectations Shift to “Buy the Rumor, Sell the News” Strategy
The whale selling strategy coincided with the upcoming ETF developments in the market. In recent submissions to the U.S. Securities and Exchange Commission (SEC), several companies removed the “delay amendment” from their applications. This change allows ETFs to automatically take effect within 20 days if the SEC does not object.
There is speculation that the first approval could come for Canary Capital’s application, with this product potentially hitting the market in the week of November 13. However, the reduction in positions by large investors suggests the classic “buy the rumor, sell the news” strategy is at play. The concern is that a potential rise due to ETF approval might be followed by a sharp price retreat.
As XRP’s price seeks direction amidst investor psychology and regulation dynamics, the current selling trend could impose additional short-term pressure on the Ripple ecosystem.
