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XRP price decline signals investor caution

Following a new all-time high, XRP shows signs of possible reversal as investors pull back.

July 21, 2025 at 03:30 AM

XRP Price Faces Reversal Risk Amid Sell-Off Concerns

XRP's recent all-time high faces challenges as new investor activity declines.

XRP price decline suggests potential reversal amid investor sell-off

XRP recently achieved a new all-time high of $3.66, driven by a strong overall market surge and increased investor interest. The altcoin saw a 27% increase last week, reaching $3.50. However, momentum seems to falter as new investor participation has dropped significantly. Within the last two days, the number of new wallets decreased from over 11,000 to fewer than 4,000, indicating hesitance among potential buyers. Additionally, long-term holders have begun selling XRP, marking a noteworthy shift that could lead to greater volatility. If this trend persists, XRP may struggle to maintain its current price levels, risking a drop below $3.38 and potentially towards $3.00, which would reverse recent gains.

Key Takeaways

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XRP recently peaked at $3.66 but is now facing potential declines.

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New investor activity has plummeted, impacting market sentiment negatively.

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Long-term holders have started selling, a signal of shifting confidence.

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If the price goes below $3.38, further losses may occur.

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Continued sell-offs could push XRP down to around $3.00.

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Without renewed demand, the altcoin's momentum remains at risk.

"If the outflow of new and long-term investors continues, XRP could lose support at $3.38."

This highlights the critical price level that XRP must maintain to avoid major declines.

"This marks the first sell-off by long-term holders in more than a month."

This indicates a significant shift in behavior among key investors who typically stabilize price levels.

"Such behavior is common after price peaks, as investors wait for clearer signals before committing capital."

This insight sheds light on investor psychology during market corrections.

"A successful breakout would push the altcoin to $3.80, marking a new ATH and invalidating the correction thesis."

This point illustrates the thin line XRP must navigate to secure its recent growth.

The drop in new investor interest coupled with sell-offs by long-term holders signals a concerning trend for XRP. Historically, the behavior of large investors has influenced market sentiment and price stability. This phase of declining confidence might not only lead to short-term volatility but could also hinder the potential for another price rally. If buying interest fails to return, XRP could face increasing downward pressure, undermining hopes for new highs and leaving it vulnerable to further losses.

Highlights

XRP's recent high faces a tough challenge—a decline in new investor interest.
Long-term holders selling XRP could signal a market shift ahead.
Without renewed demand, XRP risks facing strong volatility.
The upcoming days are crucial for XRP's price trajectory.

Investor sentiment poses risks for XRP

The decline in new investor activity and the sell-off by long-term holders indicates a potential reversal in XRP's price trajectory. If confidence continues to wane, XRP may face significant volatility and loss of value.

The future direction of XRP will heavily depend on changes in investor dynamics.

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