In the latest altcoin rally led by Ethereum (ETH), XRP reached a new ATH.
While the new ATH fueled bullish sentiment, XRP fell below $3 during the general market decline. Evaluating the decline and selling pressure in XRP, CryptoQuant analyst said that he expects the structural weakness in XRP to continue as the selling pressure intensifies.
CryptoQuant analyst The Enigma Trader predicted in a recent analysis that the market’s structural weakness is likely to continue due to increasing selling pressure from Ripple (XRP) whales.
The XRP whale wallet flow indicator has reportedly turned ‘sharply negative,’ the analyst said. The analyst noted that outflows from large wallets were observed, similar to patterns seen before past price corrections, and that this situation increased the risk of a possible correction.
“The 90-day moving average whale flow in XRP has shifted into negative territory, indicating new outflows from large wallet addresses. A similar pattern was observed between January and February. The formation of a short-term top in XRP led to sustained selling by whales and subsequent price pullbacks.
Finally, the analyst said that unless the whale’s average daily net inflow exceeds 5 million XRP, the market will show structural weakness and a positive reversal may be difficult.
This is not investment advice.