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The price of XRP has seen a decline from $2.41 to $2.23 over the past two weeks, indicating a significant reduction of positions by long-term investors by 34%. Despite strong selling pressure, daily trading volumes exceeding $150 million suggest that market participants are starting to take new positions in this altcoin. Analysts suggest that institutional investors may be entering an accumulation phase at the current level.
Search for Direction Following Institutional Liquidation
A wave of selling that began in mid-October has confined XRP’s price within the $2.31–2.47 range. Although the price briefly dipped to $2.20 with a 2% decrease on October 16–17, buying during the US trading session stabilized it around this mark. The notable high-volume rebounds from the $2.31 level signal the activation of algorithmic buying.
On-chain blockchain data reveals that the Hodler Net Position Change indicator has decreased from 163.7 million to 107.8 million coins. This decrease reflects a trend among institutional investors to reduce their risk exposure. Conversely, the open position volume in derivatives markets has surged to $1.36 billion, implying that investors may be beginning to take long positions again.
Technical Outlook for XRP: $2.47 as a Key Resistance Point
According to technical indicators, XRP is likely to seek stabilization around the $2.20 region in the short term. Volume clusters indicate strong buying interest in this area, while momentum indicators are approaching the oversold zone from neutral. Successfully surpassing the $2.47 level could invalidate the short-term bearish outlook and pave the way for potential gains up to $2.55.
The positive turn in funding rates indicates that short positions are beginning to unwind. Analysts anticipate that expectations surrounding ETFs and a possible easing in US monetary policy could fuel a new surge in demand for XRP as the quarter-end approaches.
Data provided by CryptoAppsy reveals that XRP has experienced a 7.37% decline over the past 24 hours, struggling to maintain its position above the $2.20 threshold. The data also reveals that the price has dropped by 20.67% over the last week.
