XRP recently reached a new all-time high (ATH) of $3.66 due to strong market-wide upward momentum and increased investor interest. Over the past week, the altcoin rose 27% and reached $3.50 at the time of writing.
However, as new investors withdraw, the upward momentum is weakening, suggesting a potential correction.
XRP Investors Focusing on Selling
Over the past 48 hours, the number of new XRP investors has sharply declined from 11,058 to 3,930. This sudden decrease indicates that market participants who previously contributed to the rally are losing interest.
While previous new wallet increases signaled rising confidence, the sharp decline suggests skepticism about further gains.
Such behavior is common after price peaks, with investors waiting for clear signals before committing capital. As new investors often drive short-term price movements, their retreat implies momentum slowdown.
As XRP fails to maintain demand above its ATH, the likelihood of consolidation or reversal increases.
XRP's HODLer net position change shows red bars over the past two days, indicating long-term holders (LTH) have started selling. This is the first LTH sell-off in over a month. Their changing behavior, historically crucial in maintaining price stability, is a warning sign.
These sales typically reflect a loss of confidence in continued price appreciation or an opportunity to realize profits. As long-term holders influence market sentiment, their decision to sell XRP could accelerate downward pressure.
Consequently, XRP may experience increased short-term volatility.
Will XRP Price Break Its All-Time High?
XRP is currently trading at $3.50, maintaining a strong weekly rise but with diminishing momentum. The altcoin is only 4% away from retesting its ATH of $3.66. However, continuing changes in investor sentiment may make it difficult to maintain current levels.
If the outflow of new and long-term investors continues, XRP may lose support at $3.38. Breaking this level could lead to additional losses, potentially driving the price down to $3.00 and reversing recent gains. Lack of buying interest will confirm the downward outlook.
However, if demand recovers, XRP could stabilize above $3.38 and make another attempt to break $3.66. A successful breakthrough would push the altcoin to $3.80, establishing a new ATH and invalidating correction arguments.
