"In April they come in, in May they leave"...XRP's recovery 'shakes' as big players exit

▲ XRP/ChatGPT generated image

XRP continues its bearish trend after failing to recover the $1.45 resistance level. As buying interest from large investors, which supported the price rebound in April, cooled down in May, an analysis suggests that XRP's recovery is losing structural support.

NewsBTC reported on May 21 (local time), citing an Arabchain report, that the XRP institutional accumulation indicator on Binance fell to approximately -0.0059, moving back into negative territory. This indicator gradually improved from late March to April, showing increased institutional buying interest as XRP price recovered to around $1.45 during that period.

The trend in April was less about strong buying and more about large investors cautiously increasing their exposure again. However, as the same indicator weakened in May, the price also retraced to around $1.38. The fact that institutional accumulation, which had improved with the price rebound, cooled down simultaneously with the price decline suggests that this bearish trend reveals a weakening of supply and demand fundamentals rather than just a simple short-term correction.

However, the report did not interpret the current decline in the indicator as a full-fledged distributed selling signal. The value of -0.0059 is close to neutral, indicating that it is far from a period where large holders are broadly exiting or actively selling. It was analyzed that institutional investors who increased their XRP holdings in April have not reversed their positions, but rather entered a phase of observation and re-evaluation in May.

The technical trend is also closer to a low-momentum sideways range rather than a strong rebound. After plummeting to around $1.15 in February, XRP remained in a sideways range between $1.30 and $1.50. Buying pressure attempted to break above the upper bound several times but consistently lost momentum near the declining 100-day moving average, and the 200-day moving average is around $1.70, maintaining a sell-dominant structure in the broader trend.

The report suggested the recovery of the institutional accumulation indicator into positive territory as a key future signal. If this indicator turns positive again, it could be an early confirmation signal that the buying interest from large investors, which supported the April rebound, has resumed. Conversely, until then, XRP's short-term direction is expected to be determined by its ability to defend the $1.30 support level and recover the resistance zone between $1.45 and $1.50.

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