XRP May See Further Downside as Holders and Institutions Pull Back
The post XRP May See Further Downside as Holders and Institutions Pull Back appeared on BitcoinEthereumNews.com.
XRP’s bearish momentum in late 2024 stems from profit-taking by long-term holders and reduced institutional buying, pushing the price below $2 after a historic rally to $3.68. Key factors include fading holder conviction and a 96% drop in ETF inflows. Long-term holders realized $721.5 million in profits on December 11, 2024, signaling waning confidence. Institutional ETF buying volume plummeted 96.49% from November to December 16, 2024. XRP exchange reserves reached 2.66 billion tokens, increasing sell-off risks if demand doesn’t rebound. XRP price drops below $2 amid bearish signals from holders and institutions. Explore factors driving this reversal and future outlook for the cryptocurrency in 2025. Stay informed on market shifts today. What is causing XRP’s recent price decline below $2? XRP’s price decline below $2 in December 2024 follows a prolonged bullish run that saw it reach an all-time high of $3.68 after breaking into the $2 region in November 2024. This reversal highlights growing bearish dominance driven by profit-taking from long-term holders and retreating institutional interest. Data from on-chain analytics indicates that these factors have eroded the altcoin’s upward momentum over the past month. How are long-term holders influencing XRP’s bearish momentum? Long-term holders, defined as addresses holding XRP for over 155 days without transactions, have shown fading conviction in the asset’s future. On December 11, 2024, holders aged five to seven years realized approximately $721.5 million in profits, with XRP trading near $2.03 against an average cost basis of $0.40, according to Glassnode data. This significant profit-taking, amid a wide gap between acquisition costs and market prices, suggests a lack of belief in sustained upside potential. Source: Glassnode Such actions by veteran investors often precede broader market shifts. Additionally, Ripple Co-Founder Chris Larsen sold over 200 million XRP earlier in 2024, further amplifying concerns about the altcoin’s long-term…
Filed under: News - @ December 18, 2025 2:19 am