XRP Price Prediction: Over $2.8 billion XRP flowed into exchanges in the past week, increasing selling pressure.

XRP has recently entered a sideways consolidation phase after reaching an all-time high. Although the crypto assets failed to break through the resistance level, they successfully avoided a significant pullback. However, changes in market sentiment may indicate that this state of balance is about to end, and investor behavior suggests a shift in momentum.

XRP investors lack confidence, selling pressure intensifies.

Recently, XRP investors have started to sell off in large amounts, indicating that market confidence in further price increases is declining. In the past week, nearly 450 million XRP have flowed into exchange wallets, worth over $2.81 billion. The surge in supply shows that holders are moving their assets to sell, which is typically a bearish signal in the market cycle.

Rapid profit-taking behavior may stem from concerns that XRP has peaked in the short term. As investors rush to lock in profits, XRP's price is under pressure. If selling pressure continues to increase, it could lead to a price drop below key support levels, making a pullback more difficult.

On-chain data confirms market bearish sentiment

On-chain data further validates the bearish market sentiment. The Liveliness indicator, which tracks the behavior of long-term holders (LTH), has now reached its highest point in three months. This suggests that long-term holders, who are typically known for their strong conviction and market influence, are choosing to sell XRP.

The rise of Liveliness is a precursor to a market pullback. Since long-term holders hold a large supply of XRP, their decisions have a significant impact on price trends. The increase in Liveliness reflects a broad change in market outlook, consistent with the recent surge in exchange supply and the overall decline in bearish sentiment.

Can the price of XRP reach a new historical high again?

Currently, the trading price of XRP is $3.48, only 4.8% away from its historical peak. Nevertheless, XRP shows signs of weakness and is close to the support level of $3.38. Without new buying interest, this support level may be difficult to maintain.

If the selling pressure from investors continues, XRP may drop below $3.38 and test the $3.00 support level. A drop to this level would erase recent gains and confirm the occurrence of a short-term bearish reversal. If it falls below $3.00, it may enter a longer period of Sideways consolidation or a deeper pullback.

However, if market participants can absorb the selling supply and restore demand, XRP may rebound quickly. In this case, XRP could break through $3.66, challenge $3.80, and aim for $4.00. Such a trend would invalidate the bearish outlook and could potentially create a new all-time high.

Conclusion: XRP is currently facing selling pressure from investors and a decline in market confidence, with prices oscillating near key support levels. The market trend will depend on the duration of the selling pressure and the recovery of buying interest. If selling pressure does not ease, XRP may face a larger pullback; however, if demand recovers, XRP could also potentially break through resistance and form new highs.