Ripple’s XRP is stuck in limbo. Investors are losing patience and the worst sell-off may already be happening.
Here is the recap.
Stuck under a key line
At press time, XRP was attempting to regain its position above its realized price. Simply put, this is the average price current holders have paid for their coins.
Source: Alphractal
When the market price is below this threshold, most investors are underwater. This is exactly what is happening.
Recent data from Alphractal showed that Ripple (XRP) recently fell below this line and is struggling to recover. This is not a good sign in the short term.
Assets that stay below realized price for too long mean weak momentum and general caution.
Source: Alphractal
But note that this level is also like a psychological line. If XRP manages to recover and hold above, confidence will return quickly.
But in the meantime, the market remains in a fragile state.
And if that’s not enough of a challenge…
…external demand has not provided much support either.
XRP Spot ETF flows have been quite weak in recent weeks, with net inflows slowing after an initial burst of interest.
Data by SoSoValue showed inflows turned negative toward the end of January, followed by a modest recovery in February. Total net assets also declined overall.
Source: SoSoValue
The weight of the major players was not strong enough to offset the selling pressure. Until cash flow recovers significantly, ETFs are unlikely to help XRP recover.
The pressure is mounting, but is there a turning point?
Source: CryptoQuant
According to analyst Darkfost, more than 31 million XRP was recently transferred to Binance in a single day – mostly from large holders.
Big FX flows often mean selling, and in this case that represents about $45 million in possible short-term selling pressure. If this offer hits the market, recovery could take longer.
Source: Santiment
At the same time, Santiment data revealed that XRP saw its largest spike in realized losses since 2022. This means that many investors sold at a loss, likely out of fear. These panic phases tend to occur near market lows.
The last time losses reached similar levels, XRP continued to rebound strongly over the following months. There is a chance of recovery.
Final Summary
- XRP is below its realized price while ETF demand weakens.
- Surrender may be underway. A rebound could be coming.
