XRP struggles to sustain momentum as new addresses sharply decline, impacting long-term holders' profits. On-chain signals indicate a gradual disengagement that may push the altcoin to lower levels. Will the $2.28 zone withstand increasing selling pressure?
One of the most revealing indicators concerns the creation of new XRP addresses, which has fallen dramatically in recent weeks. After reaching a four-month peak earlier in May, with a massive influx of new wallets, the trend has sharply reversed. Glassnode data shows that only 6,336 new addresses were recently created, a concerning level that demonstrates a clear lack of interest from newcomers.
This contraction of the investor base is never insignificant in the crypto ecosystem. Without an influx of fresh capital, the demand necessary to support price increases is lacking. The market then becomes dominated by existing holders, creating an environment conducive to stagnation or pullbacks. Liquidity gradually diminishes, making each bullish movement more difficult to sustain.
The absence of new buyers also reflects a lack of positive catalysts for XRP. Potential investors appear to be waiting for clearer signals, whether on the regulatory front with the SEC or on the technical side with a confirmation of a bullish breakout. Meanwhile, the risk of prolonged consolidation or even a technical correction intensifies.
The profitability of XRP positions continues to erode, as shown by the Long/Short MVRV ratio, which has fallen to just about 3%. This on-chain indicator reveals that even long-term investors are seeing their gains gradually melt away, a signal of structural weakness in the market. Historically, a positive but declining MVRV often precedes distribution phases, where long-term holders seek to secure their profits, intensifying selling pressure.
On the technical front, XRP is evolving in a narrow range, with a key support at $2.28. As long as this strategic level holds, lateral consolidation remains the preferred scenario. However, a breakdown below $2.28 could trigger a retreat towards $2.13, activating stop-losses and triggering a bearish domino effect fueled by increasing selling volumes and deteriorating on-chain indicators.
Conversely, an improvement in market sentiment and the return of institutional capital could allow XRP to transform the $2.36 resistance into support. This technical reversal would open the way towards $2.45 and then $2.52, invalidating the current bearish scenario and restoring bullish momentum. The market is therefore at a pivotal point, split between prolonged consolidation and potential recovery.
Trade XRP with one of the most powerful trading bots on the market, like 100,000 professional traders!
Related topics:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
