- XRP reached a new all-time high of $3.66 but is losing momentum as new and long-term investors start selling.
- This sell-off risks pushing the price below key support levels, though a recovery above $3.66 remains possible.
XRP recently made headlines by reaching a new all-time high (ATH) of $3.66, sparking excitement among investors and pushing the altcoin up 27% over the past week. However, despite this strong rally, signs are emerging that XRP’s upward momentum may be fading, with investors growing uncertain about the cryptocurrency’s near-term prospects.
New Investor Interest Drops Sharply
One key indicator of weakening momentum is the sudden decline in new XRP investors. Over just 48 hours, the number of new wallets dropped steeply from 11,058 to 3,930. This sharp fall signals a growing hesitation among market participants who were earlier driving the rally. Historically, surges in new investors tend to fuel short-term price spikes, so their retreat often precedes market corrections.
Source: Santiment
This drop suggests that many are now waiting for clearer price signals before committing funds again. The lack of fresh buying pressure above the $3.66 ATH raises the possibility that XRP could enter a consolidation phase or even face a price reversal.
Long-Term Holders Start Selling
Adding to the bearish signals is the behavior of long-term holders (LTHs). After maintaining price stability for over a month, LTHs have begun selling their XRP, as indicated by a negative net position change in recent days. Since these holders usually demonstrate confidence in XRP’s value, their decision to take profits or reduce exposure is a strong warning sign.
When both new investors and LTHs begin selling simultaneously, it amplifies downward price pressure and increases market volatility. This combined outflow raises concerns that XRP could soon lose key support levels.
What’s Next for XRP Price?
Currently trading around $3.50, XRP is just 4% below its ATH of $3.66. If investor sell-off continues, the critical support at $3.38 may break, potentially triggering a further decline toward the $3.00 mark. This drop would reverse much of the recent gains and confirm a short-term bearish trend.
However, if demand stabilizes and buying interest returns, XRP could hold above $3.38 and attempt another breakout above its ATH. A successful move beyond $3.66 would likely push XRP toward $3.80, setting the stage for a new record high and negating fears of a correction.
XRP’s price is at a crossroads, with investor sentiment shifting and key holders starting to sell. Whether the altcoin can regain momentum or faces a reversal depends largely on the market’s next moves. Investors should watch closely for signals around support levels to gauge XRP’s direction in the coming days.
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