XRP Under Siege: Investors Pivot from Holding to Distribution Amid Intensified Selling Pressure
XRP is currently navigating a period of significant market volatility, with its price recently breaching the crucial $2 level. This decisive breakdown indicates a palpable shift in investor sentiment, moving away from a holding strategy towards active distribution, as fear supplants earlier market optimism. Recent analysis by Darkfrost reveals a substantial intensification of selling pressure on XRP over recent weeks, characterizing the current downturn as a deeper corrective phase rather than a mere pullback. The cryptocurrency has experienced a notable depreciation, plummeting approximately 50% from its cycle peak near $3.66 to hover around the $1.85 mark. This behavioral change is particularly evident in exchange inflow data, with Binance emerging as a primary indicator. Since mid-December, XRP transfers to Binance have accelerated dramatically, with daily inflows consistently ranging between 35 million and a staggering 116 million XRP recorded on December 19. This marks a sharp departure from the holding-oriented investor behavior observed throughout October and November. From a technical standpoint, XRP is currently trading below all major moving averages, which have now transitioned into dynamic resistance levels. The price continues to consolidate near the $1.87–$1.90 zone, maintaining a consistent pattern of lower highs and lower lows since its rejection from the $3.00–$3.50 range earlier in the year, solidifying its bearish market structure. Although the $1.80–$1.85 region has demonstrated some capacity to absorb selling pressure, the absence of a strong rebound underscores a lack of robust buying conviction. A clear breach below this critical support would expose XRP to further downside, potentially leading to a retracement towards the historical demand zone of $1.50. Investors should note that without a sustained reclamation of the $2.10–$2.20 range, the prevailing trend suggests further consolidation or a deepening of the current correction.
