Top Reasons Why XRP Price is Falling, Can it Recover?

XRP price has continued to stay in the red today, falling over 1% amid a broader crypto market retreat.

Notably, as it continues to test the support between the $2.4 and $2.5 mark, market participants are questioning the potential future movement of the coin.

In addition, the consolidation phase of Ripple coin has further spooked traders, who are seeking more insights for the asset.

Besides, the recent positive catalysts have also failed to lift the price up in recent days, which has further fueled discussions among market watchers.

For context, a flurry of leading players in the space have filed for an XRP ETF. In addition, the market experts are anticipating a potential launch of such an investment instrument for Ripple coin as soon as this week.

Despite that, the XRP price has failed to showcase much impact. Although a flurry of factors might have contributed to the recent stagnant phase of XRP, here we explore some of the top reasons behind it.

XRP Price Slips Amid Whale Selloff

XRP price has recorded a loss of over 1% and traded at $2.43 at the time of writing. Its trading volume was down more than 25%, suggesting lesser trading activity, which might have also contributed to the losses.

However, despite the ongoing volatile scenario, it’s worth noting that the weekly chart shows a gain of around 9% in the asset’s price.

On the other hand, the Ripple coin price lost nearly 6% over the last 30 days. The derivatives market also reflects the waning risk-bet appetite of traders.

According to CoinGlass data, the XRP Futures Open Interest fell more than 4% today to $3.91 billion, fueling concerns over a further dip in the near future.

In addition, the Ripple whales also appear to be offloading their holdings, which have continued to weigh on the sentiment.

For context, in a recent X post, analyst Ali Martinez has highlighted the selloff trends, which have caught the eyes of traders.

According to Ali Martinez, whales have offloaded 90 million coins so far this week. This suggests that the whales are turning cautious on the future trajectory of the asset.

Who is Buying XRP?

When questioned about who’s buying, Martinez attributed it to “overleveraged degens”. However, XRP enthusiast X Finance Bull paints a different picture.

In a different take, X Finance Bull suggests that retail investors and institutions are actually accumulating XRP, while whales and exchanges are quietly dumping their holdings. He noted that the whale is selling to suppress prices.

“If they didn’t dump every time XRP pumps, it would turn into a FOMO-buying frenzy,” the enthusiast claimed.

He also hints at a massive influx of funds, stating, “20 trillion is coming to buy up cheap crypto very, very soon”, implying that XRP price might be poised for a significant surge.

What’s Next for Ripple Coin?

The current market trends also support the anticipation of a potential XRP price surge ahead. For context, among others, Canary Capital has recently submitted an 8A filing for XRP ETF this week.

Commenting on that, Bloomberg ETF analyst Eric Balchunas suggests a potential launch of the ETF this Thursday. This, if happens, could lift the market sentiment and help in a strong recovery for XRP price.

Meanwhile, evaluating the technical trends, analyst CRYPTOWZRD suggests that XRP price may witness a recovery as long as it holds $2.39 support.

Besides, the expert has highlighted a key resistance at $2.75, breaking which could trigger a surge to $3.15 in the near term.

On the other hand, if Ripple coin fails to hold the $2.3 support, its chart warns of a looming crash to $2 or even lower.

Having said that, investors are keeping close track of the latest price movements of the coin for cues on its potential future movements.