XRP Faces Significant Downward Pressure as Buyer Support Diminishes

MissedTheBoat · 2026-01-30T05:07:18+00:00

XRP is facing significant downward pressure with its current price at $1.77, just above a critical support level. Technical analysis indicates a potential drop of 25% if this support fails, driven by weak buyer interest and strong selling from major holders. Additionally, on-chain data shows institutional outflows and decreased accumulation among long-term investors, signaling decreased confidence in XRP's market.

MissedTheBoat

2026-01-30 05:07:18

Abstract generation in progress

XRP is currently trading at $1.77, positioned just above a critical support level. Technical analysis indicates that a downside scenario of up to 25% is highly likely if this support is breached by increasing selling pressure. The XRP market condition reflects unhealthy dynamics, with various indicators showing weak buyer interest and rising selling pressure from sellers.

Critical Support Level: 25% Drop Risk if Defense Breaks

According to data from NS3.AI, the recent hidden bullish divergence failed to trigger a significant price recovery. This failure serves as a warning sign that bullish momentum has weakened. The current support level maintained by XRP is the last barrier before a potential deeper decline. Any breakdown below this support is projected to open opportunities for an additional drop of up to a quarter of the current price, posing substantial risk to asset holders.

Buyers Absent, Selling Pressure from Large Holders Dominates

The imbalance between supply and demand is a major issue. Large holders (whale holders) continue to add selling pressure, while new buyer interest is very weak in offsetting this selling flow. The absence of strong buying interest means there is no sufficient fundamental support to sustain the current price level, making further decline an increasingly likely scenario.

On-Chain Data: ETF Withdrawals and Decreased Accumulation

Alarm signals also come from on-chain data showing outflows from exchange-traded funds (ETFs). Additionally, long-term investor accumulation is actually decreasing, not increasing. The combination of institutional fund outflows and reduced asset gathering by long-term holders indicates a decline in confidence from both institutional and retail sectors. This phenomenon reflects a serious loss of momentum in demand for XRP.

Overall, XRP is facing multidimensional downward pressure—from technical perspectives, on-chain data, to buyer behavior—creating a challenging environment for upside recovery in the short term.

XRP-19.46%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.