Ripple’s XRP has steadily declined since September 18th, releasing about 7% of its value over the past week.
The token struggle raised doubts about whether it could regain the much-needed $3 price range before the month ended.
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XRP faces sales pressure as offloading keychains
According to GlassNode, XRP Short Term Holders (STH) are defined as holding coins for 1-3 months, and have steadily reduced holdings over the past few days and have increased downward pressure on tokens.
The HODL Waves metric tracks the time coins are held across various investor groups, indicating a clear decline in STH holdings since September 21st. At the time of this writing, XRP STHS reduces 10.72% of token distribution supply by 5% over three days.
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This trend is important as STHS often controls a significant portion of the circulating supply of assets and typically responds quickly to market conditions. Therefore, if they start selling like this, the decline in assets could worsen. This raises concerns about XRP’s ability to regain key price levels in the short term.
Additionally, large XRP investors gradually reduced their holdings this week as well. This could be even heavier in the market. According to Santiment, since September 19th, whales, which have held between 10 million and 100 million tokens, have sold 90 million XRP.
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This sale by key holders can have a negative impact on market sentiment, as large distributions indicate a lack of confidence in short-term price stability. Such a move could lead to additional sales from small investors, putting further downward pressure on XRP prices.
Do you keep the XRP or will it fall?
Technical indicators will be added to the careful outlook. On the daily charts, XRP is sliding under its west sea clouds, showing a presumably bearish trend for the rest of September. At press, XRP prices fall below the main spans A and B, resisting the token price at $2.93 and $3.04, respectively.
One-sided cloud tracks the momentum of asset market trends and identifies potential support/resistance levels. When assets trade under this cloud, they reflect bearish pressure in the market. That means a food stall in demand during the sale of pressure spikes.
In the case of XRP, the dynamic resistance level highlighted by this indicator poses a major barrier to the upward momentum in the short term. If the purchasing pressure is low, the XRP could plummet to $2.78, stalling rally above $3.
However, if purchasing activity grows, XRP will witness a rebound, surge in the main span A at $2.93 and try to push towards $2.99. A break above this level can open the door to surge past the main span B resistance of $3.04.
