XRP fall in 4 days: Whale retreats; is it time for retail investors to get involved?

Since reaching a high of $2.33 five days ago, XRP has faced significant downward pressure.

During this time, the altcoin has fallen for 4 consecutive days, recording a low of $2.08.

Whales offloading signals market impatience

Large holders seem to have run out of patience.

In the past month, XRP whales have dominated the spot market, continuously initiating most of the large-scale orders.

Source: CryptoQuantThis is reflected in the Average Spot Order Size metrics, indicating that the pattern mainly consists of large transactions on the XRP Ledger.

Although such scale may imply accumulation or distribution, recent cash flow is showing negative signals.

Whale Alert reports that a whale has transferred 26,896,993 XRP tokens worth 57.7 million USD to Coinbase.

Typically, when a large amount is sent to the exchange, it signals an intention to sell or a strategic positioning. If such a large transfer transaction leads to a sell-off, it will put significant downward pressure.

Net cash flow increases as sellers tighten control

Source: CoinGlassThe net flow of the exchange provides further evidence of selling activity. According to data from CoinGlass, this indicator of XRP has just turned positive for the first time in 6 days, reaching 1.1 million USD.

When the inflow exceeds the outflow, it often indicates that traders are sending assets to exchanges, possibly to sell.

Furthermore, the Taker Buy Sell ratio of XRP remains below 1 for 6 consecutive days.

Source: CryptoQuantTherefore, with selling pressure prevailing in the market, this indicates that even large orders from whales are primarily sell orders. These conditions have left XRP in a weakened position and at risk of further losses.

Is XRP in a fall?

According to the analysis, XRP is currently facing strong selling pressure from all market participants. In the past, higher selling pressure has often caused the price to move lower unless demand recovers to absorb this selling force.

If selling pressure continues to be uncontrolled and buyer demand does not return, then XRP is likely to fall below the psychological support level of $2, even to $1.90 unless there is a strong recovery.

However, this pessimistic sentiment may be invalidated if the daily closing price hovers around $2.2.

This will signal that buyers have returned to the market and help restore confidence.

Vincent