XRP has struggled with price resistance at $0.55 and support at $0.51, leading whales to offload holdings, reducing their overall XRP by 700 million tokens since mid-October. This change is indicative of weakened confidence in the asset's future price performance.
Santiment data shows large investors selling off significant amounts, marking the lowest whale holdings of XRP since early August. This selling trend can depress demand and exert further downward pressure on XRP's price, enhancing bearish market sentiment.
The decline in XRP's price performance aligns with a decrease in the percentage of its total supply held at a profit, which has dropped from 89% to 71.29% since October 1. This 20% decrease suggests more holders are at a loss, increasing the likelihood of further sell-offs.
XRP's current trading position is near a crucial support level at $0.51. If support fails, prices may decrease towards $0.46, with potential further declines to the July low of $0.38. A shift in market momentum might help XRP break resistance at $0.55, aiming for $0.60.
