XRP Fails Again as Investors Pull Back Support
After yet another unsuccessful effort at a breakout, XRP is still stuck in an ongoing downturn. The altcoin’s continued trading below significant resistance indicates that investor support is waning. As confidence declines, there is more pressure to sell. This suggests that even with numerous attempts at recovery, XRP might find it difficult to buck the trend.
On-Chain Data Signals Rising Selling Risk for XRP
Profitability has sharply declined, according to on-chain data. After declining steadily for weeks, the profit margin on XRP supply has now fallen to 52%. Currently, about half of the supplies in circulation are at a loss. This raises the possibility of panic-driven sales. Similar levels of profitability were last attained in November 2024. Historically, prolonged drawdowns have frequently occurred when XRP’s profit margin drops below 50%. This pattern indicates increased downside risk in the long run, even though a deeper collapse is not imminent.
Macro data also increases the pressure. The top 1% of XRP addresses now own significantly less supply. At the beginning of the month, these wallets held 87.7% of the entire supply. Presently, they hold 87.6%. These addresses contain institutional-scale holders as well as whales, despite the seemingly minor shift. This group can affect price behavior with even a moderate distribution. Their slow sale conveys caution. Concerns regarding XRP‘s capacity to maintain a rebound in the absence of fresh demand are also reaffirmed by this.
XRP Price Stuck Below $1.94 as Bearish Pressure Persists
As of this writing, XRP is trading close to $1.92, slightly below the $1.94 resistance. A downtrend line that has been in place for more than six weeks continues to restrict the price. In the short future, XRP is probably going to consolidate between $1.85 and $1.94, given the current circumstances. XRP is susceptible to more selling due to bearish sentiment. As traders respond to falling profits and poor distribution, a climb toward $1.85 is still feasible. However, unless the overall state of the market drastically worsens, a deeper breakdown seems unlikely.
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