XRP has shown significant growth, reaching $3.50, but is now witnessing a drop in new investor interest and selling by long-term holders.
Decline in New XRP Investors
Recent data indicates that the number of new XRP investors has plummeted from 11,058 to 3,930 over the past 48 hours. This steep decline signals a waning interest from short-term traders who had previously contributed to the asset's rise.
Long-Term Holders Begin Profit-Taking
The HODLer Net Position Change metric for XRP has turned red for the first time in over a month. This indicates that long-term holders are beginning to sell their positions, reflecting either diminished confidence in further price increases or a strategic move to lock in profits.
XRP Support and Resistance Levels
Currently priced at $3.50, XRP is just 4% away from retesting its all-time high of $3.66. However, if selling continues, XRP could drop below the key support level of $3.38, potentially pushing the altcoin down to $3.00.
Despite XRP's favorable position from a technical standpoint, investor behavior indicates early signs of fatigue. With cautious new entrants and profit-taking by long-term holders, XRP may face short-term volatility.
