Large XRP holders have once again started offloading their holdings, causing concern among analysts about the potential impact on the price of the cryptocurrency.
According to a recent analysis by CryptoQuant, there has been a significant decrease in the 90-day average whale inflow for XRP, with the metric now in negative territory. This trend indicates that large wallets are once again moving their XRP out of their holdings, marking a shift from the previous accumulation trend.
Drawing parallels to a similar pattern earlier this year, the analyst highlighted that a similar trend occurred just before a local price top in February. During that time, the market experienced a prolonged downturn, resulting in a nearly 50% drop in XRP prices.
Although the current phase of outflows is shorter in duration, analysts are noting similarities in the structure of the market, with sustained outflows and no clear signs of a reversal in sight. Additionally, over 720 million XRP have been offloaded in recent weeks, further adding to the negative pressure surrounding the token.
Large-scale movements of XRP often have a significant impact on price direction, with heavy sell-offs typically leading to downward pressure on prices. Analysts are now cautioning that unless whale inflows rebound to over 5 million XRP daily, the market may continue to exhibit structural weakness.
As of the time of writing, XRP is trading at $3.08, showing a 4.7% increase over the past 24 hours. However, the token has been struggling to regain upward momentum since its peak in July at $3.6.
On the daily chart, XRP is maintaining strength above key moving averages but is currently trading within a short-term range between $2.95 and $3.10. The Relative Strength Index (RSI) is hovering around 54, indicating a balanced market with the potential for price movement in either direction.
If whale inflows return to levels suggested by analysts, it could ignite fresh buying momentum and push XRP higher. However, if the trend of heavy outflows persists, the market may continue to face downward pressure, with the possibility of further downside risks.
In conclusion, the recent resurgence of large XRP holders offloading their holdings is causing concern among analysts about the potential impact on XRP’s price. It remains to be seen how this trend will play out in the coming days and whether the market can overcome the current distribution pressure.