Investor demand for XRP falls as the bull market stalls — Will traders defend the $2 support?

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Between Oct. 25, 2024, and Jan. 16, 2025, XRP (XRP) had 1 of the champion rallies of the existent bull market, gaining 600% arsenic investors piled successful with the anticipation that a pro-crypto presidency would payment Ripple and its cryptocurrency.

During this time, the quarterly mean of regular progressive addresses jumped by 490% and XRP terms deed a 7-year high.

Fast guardant to the present, and information shows that the speculative involvement surrounding XRP is declining. Holders are progressively facing losses alternatively than gains, which is dampening their hazard appetite.

“Retail assurance successful XRP whitethorn beryllium slipping”

Since bottoming successful 2022, Bitcoin (BTC) and XRP person gained 500% to 600%, but the bulk of XRP’s gains came from a parabolic terms increase. Data from Glassnode shows that XRP regular progressive addresses jumped by 490%, whereas the aforesaid metric for Bitcoin accrued by 10% implicit the past 4 months.

XRP, Markets, Price Analysis, Market Analysis

This retail-driven surge pushed XRP’s realized headdress from $30.1 cardinal to $64.2 billion, with $30 cardinal of that inflow coming from investors successful the past six months. The stock of XRP’s realized headdress held by caller investors (less than six months) jumped from 23% to 62.8%, signaling a accelerated wealthiness shift. However, since precocious February 2025, superior inflows person dipped significantly.

The superior crushed is that investors are presently locking successful less profits and staring astatine higher losses. This tin beryllium identified by the realized loss/profit ratio, which has perpetually declined since 2025. Glassnode analysts said,

“Given the retail-dominated inflows and mostly concentrated wealthiness successful comparatively caller hands, this alludes to a information wherever retail capitalist assurance successful XRP whitethorn beryllium slipping, and this whitethorn besides beryllium extended crossed the broader market.”

Besides weakening assurance among newer investors, the organisation of XRP among whale addresses reflects a akin trend. Data shows a dependable summation successful whale outflows since the commencement of 2025, suggesting that ample holders person been consistently trimming their positions. Over the past 14 days, implicit $1 cardinal successful positions were offloaded astatine an mean terms of $2.10.

Can XRP clasp the $2 support?

XRP has recovered enactment astatine $2 aggregate times implicit the past fewer weeks, but the accidental of the altcoin dropping beneath this level increases with each retest.

However, connected the little clip framework (LTF) of the 1-hour and 4-hour charts, a bullish divergence tin beryllium observed for XRP. A bullish divergence occurs erstwhile the terms forms a little debased and the comparative spot scale (RSI) forms a little high.

With a just worth spread betwixt $2.08 and $2.13, XRP mightiness spot a alleviation rally into this range, particularly if the wider crypto marketplace undergoes an oversold bounce. On the higher clip framework chart, XRP appears bearish owed to the enactment of an inverse head-and-shoulders pattern, with a measured people adjacent $1.07.

There is simply a accidental that the altcoin finds enactment from the 200-day moving mean (orange line) astir the $1.70 to $1.80 mark, but XRP terms has not tested this level since Nov. 5, 2024.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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