XRP Selling Pressure Drops 39% but $1.96 Resistance Still Key
Recent data shows a marked 39% reduction in XRP selling pressure alongside persistent challenges in breaching the $1.96 resistance level. This interplay between declining supply-side pressure and a stubborn price ceiling underscores a critical juncture for XRP’s market trajectory, with implications for potential trend shifts or continued consolidation.
What happened
XRP has experienced a significant drop in selling pressure, quantified at approximately 39%, indicating fewer tokens are being offloaded in recent trading periods. This decline is supported by on-chain data from Santiment, which highlights a reduction in XRP outflows from major exchanges, suggesting that fewer holders are moving tokens to exchanges to sell. Concurrently, technical analysis reveals that the Relative Strength Index (RSI) for XRP remains near neutral to mildly bullish levels but has yet to reach overbought territory, reflecting a lack of strong upward momentum.
Despite this easing of selling pressure, the $1.96 price level continues to act as a significant resistance barrier. Market data confirms multiple tests of this threshold without a decisive breakout, limiting XRP’s ability to establish a sustained rally above this mark. Analysts from BeinCrypto and Santiment interpret these conditions as the possible formation of a base, anchored by stable support in the $1.70 to $1.80 range. However, consensus from technical commentators on TradingView suggests that failure to break above $1.96 may point to insufficient bullish momentum, potentially signaling a temporary pause rather than a definitive reversal of the prior downtrend.
Additional analysis from Santiment notes that the drop in selling pressure could reflect accumulation by long-term holders, which might support a sustainable upward trend if corroborated by increased on-chain whale activity and higher volume during price advances. Conversely, some market observers on platforms like CryptoQuant and Glassnode caution that reduced selling pressure may instead indicate a lack of new buyers, implying consolidation rather than clear strength.
Why this matters
The interaction between declining selling pressure and persistent resistance at $1.96 holds structural significance for XRP’s market dynamics. A sustained reduction in selling activity can alleviate downward price pressure, potentially enabling price stabilization or recovery. If this reduction stems from genuine accumulation by long-term holders, it could lay the groundwork for a durable trend reversal, particularly if accompanied by a successful breach of the $1.96 resistance supported by robust volume.
However, the inability to surpass $1.96 despite lower selling pressure raises questions about the depth of demand and the strength of bullish conviction. This price level has repeatedly capped upward moves, indicating that sellers or profit-takers remain active at this threshold. The outcome at this juncture may influence trader behavior and market structure, with a decisive breakout potentially triggering renewed buying interest, while continued resistance could maintain XRP in a consolidation phase or expose it to renewed bearish pressure.
In the broader context, XRP’s price action and market structure are also intertwined with macro-level factors such as Bitcoin dominance and overall crypto market sentiment. Although these influences are not fully captured in the current data, they remain relevant to understanding XRP’s capacity to sustain gains beyond technical resistance.
What remains unclear
Several critical questions remain unresolved due to limitations in available data. It is not definitively known whether the observed decrease in selling pressure is primarily driven by accumulation from long-term holders or simply reflects a temporary withdrawal of retail sellers. Detailed on-chain metrics—such as wallet age distribution and segmented exchange inflows/outflows by entity type—are not publicly available, which restricts clarity on buyer and seller profiles.
Moreover, the volume and volatility patterns during attempts to break the $1.96 resistance lack comprehensive analysis. It remains uncertain whether future breakouts will be accompanied by significant volume increases that would confirm buyer conviction or if low volume will persist, indicating weak demand.
Institutional flows related to XRP, including activity from Ripple Labs or major funds, are also not transparently documented, leaving a gap in understanding their impact on supply-demand dynamics. Additionally, the influence of external macroeconomic and market factors on XRP’s price behavior at this stage is not fully accounted for in the available research.
What to watch next
- Monitor XRP trading volume and volatility during any renewed attempts to break above the $1.96 resistance to assess the strength of buyer conviction.
- Track on-chain data for signs of increased whale accumulation or shifts in wallet age distribution that could confirm long-term holder involvement.
- Observe exchange outflows and inflows to determine whether selling pressure continues to decline or if tokens begin flowing back onto exchanges for sale.
- Assess broader market conditions, including Bitcoin dominance and macroeconomic developments, for their potential influence on XRP’s price momentum.
- Look for any disclosures or data releases from Ripple Labs or institutional investors that might shed light on current supply and demand dynamics.
The current reduction in XRP selling pressure combined with persistent resistance at $1.96 presents a nuanced scenario. While the conditions suggest the possibility of a developing base and eventual upward breakout, the absence of clear volume confirmation and institutional flow data leaves the sustainability of any trend reversal uncertain. Continued observation of on-chain metrics and price action at key levels will be essential to discerning whether this phase represents a temporary consolidation or the start of a renewed bullish trend.
Source: https://beincrypto.com/xrp-price-prediction-selling-pressure-drops-key-resistance-test/. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.