XRP, No Collapse Despite $35 Million Sell-off..."ETFs are the Support"

▲ XRP

Despite receiving $35 million in net selling pressure on Binance, XRP has maintained its $1.4 support level. Analysis suggests that while selling continued, spot purchases by XRP spot ETFs and large wallets absorbed the volume, limiting downward price pressure.

According to 24/7 Wall St. on May 8, XRP rose by over 1% in the past 7 days. During the same period, sellers on Binance disposed of $35 million more XRP than buyers. Typically, for an asset stuck in a narrow price range, this level of selling pressure could strongly push the price down, but XRP maintained its defense line with continuous buy orders flowing in around $1.4.

24/7 Wall St. identified XRP spot ETFs and whale/institutional spot purchases as the main sources of buying pressure. XRP spot ETFs absorbed approximately $28 million during the same period. Notably, fund inflows continued for three consecutive days from May 4 to May 6. This amount largely offset the $35 million net selling on Binance.

The remaining approximately $7 million cannot be explained solely by ETF flows. The original text interpreted this gap as spot purchases by whales and institutions. According to CryptoQuant data, the volume of whale inflows into Binance decreased from 2.6 billion XRP in early March to 736 million XRP recently, falling to a four-year low.

Binance's XRP holdings also dropped to approximately 2.7 billion XRP, marking a five-year low. 91.4% of XRP outflows occurred from large wallets. The original text interpreted this as large holders not dumping XRP onto exchanges but rather moving it off exchanges, and ETFs consistently buying in the open market.

However, the reason why XRP cannot strongly push higher is also clear. 24/7 Wall St. analyzed that a supply wall around $1.45 continues to prevent further ascent. Approximately 60% of XRP holders are said to have purchased at an average of $1.44. Whenever the price approaches this zone, holders who were in a loss-making position engage in break-even selling, pushing XRP back into its range.

The key breakout point was suggested to be $1.47. 24/7 Wall St. believes that if XRP surpasses $1.47, buy orders could shift from passive absorption to aggressive chase buying. Above $1.47, the next high-volume zones on the 12-hour chart are at $1.8 and $2.1, and there is approximately 26% upside potential if the price rises from the current level to $1.8.

Analysis also suggested that two conditions are needed for XRP to open its next upward trend. The first is for buying pressure to gain dominance above $1.47, and the second is for Bitcoin (BTC) to recover above $82,000 and rise further, triggering a broader market rebound. 24/7 Wall St. stated that whether consistent selling or consistent buying gains the upper hand could determine XRP's next 26% move.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*