XRP Price Plummets Despite ETF Green Light — Here’s How Holders Could Reverse the Trend
XRP defies conventional wisdom with a sharp decline following landmark ETF approval—creating what analysts call a 'paradoxical plunge' that's leaving traders scrambling.
The Holder Gambit
Market veterans point to XRP's unique holder composition as the potential catalyst for reversal. Unlike typical retail-driven assets, XRP's concentrated holder base could execute coordinated accumulation strategies that bypass traditional market mechanics.
Whale Watching Intensifies
On-chain data reveals increased large wallet activity during the dip—suggesting sophisticated players might be building positions while mainstream investors panic sell. This divergence often precedes violent upside moves in crypto assets.
Regulatory Irony
The price drop occurring alongside regulatory progress highlights crypto's persistent disconnect between fundamental developments and short-term price action—because nothing says 'efficient markets' like assets moving opposite to their clearest catalysts.
With ETF infrastructure now in place, XRP holders hold the keys to whether this becomes a temporary anomaly or the start of a new paradigm where digital asset valuations finally align with their regulatory maturity.
XRP Holders To The Rescue
The Liveliness indicator highlights encouraging trends for XRP, showing a steady decline over the past two weeks. Currently at a two-month low, the reading suggests that supply movement from LTHs has slowed significantly, pointing to holding or accumulation rather than large-scale selling.
This behavior indicates confidence among long-term investors, who historically have a strong influence on XRP’s trajectory. Their decision not to panic sell despite market uncertainty provides a cushion against sharp corrections. It also shows readiness to hold until a meaningful price recovery presents itself.
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Looking at macro conditions, the LTH Net Unrealized Profit/Loss (NUPL) provides further insight into investor behavior. The metric shows that LTHs are refraining from selling largely due to limited realized profits at present levels. This restraint reduces immediate downside risk.
Historically, LTH selling tends to intensify only when the NUPL crosses above 0.7, with stronger pressure emerging beyond the 0.75 mark. Since XRP has not reached these thresholds, the token still has room to recover without significant risk of mass profit-taking from major holders.
XRP Price Needs A Push
At the time of writing, XRP trades at $2.84, just under the $2.85 resistance. A flip of this barrier into support WOULD likely signal the beginning of a reversal, strengthening bullish sentiment. Traders are closely watching this zone for confirmation.
If support from LTHs holds, XRP could climb toward $2.94 in the short term. Breaching this level would pave the way for a further rise to $3.02, signaling broader recovery potential and invalidating near-term bearish concerns.
However, if market conditions worsen or LTHs shift their strategy to selling, XRP could lose momentum. The altcoin risks sliding toward $2.75 or even deeper to $2.64, jeopardizing bullish expectations and prolonging the consolidation phase.
