Investor demand for XRP falls as the bull market stalls — Will traders defend the $2 support?

Between Oct. 25, 2024, and Jan. 16, 2025, XRP (XRP) had the most effective rallies of the present bull market, gaining 600% as traders piled in with the hope {that a} pro-crypto presidency would profit Ripple and its cryptocurrency.

Throughout this time, the quarterly common of every day energetic addresses jumped by 490% and XRP value hit a 7-year excessive.

Quick ahead to the current, and knowledge exhibits that the speculative curiosity surrounding XRP is declining. Holders are more and more going through losses slightly than features, which is dampening their threat urge for food.

“Retail confidence in XRP could also be slipping”

Since bottoming in 2022, Bitcoin (BTC) and XRP have gained 500% to 600%, however the bulk of XRP’s features got here from a parabolic value improve. Knowledge from Glassnode exhibits that XRP every day energetic addresses jumped by 490%, whereas the identical metric for Bitcoin elevated by 10% over the previous 4 months.

This retail-driven surge pushed XRP’s realized cap from $30.1 billion to $64.2 billion, with $30 billion of that influx coming from traders within the final six months. The share of XRP’s realized cap held by new traders (lower than six months) jumped from 23% to 62.8%, signaling a fast wealth shift. Nonetheless, since late February 2025, capital inflows have dipped considerably.

The first purpose is that traders are presently locking in fewer earnings and observing increased losses. This may be recognized by the realized loss/revenue ratio, which has always declined since 2025. Glassnode analysts stated,

“Given the retail-dominated inflows and largely concentrated wealth in comparatively new palms, this alludes to a situation the place retail investor confidence in XRP could also be slipping, and this will likely even be prolonged throughout the broader market.”

Apart from weakening confidence amongst newer traders, the distribution of XRP amongst whale addresses displays an analogous development. Knowledge shows a gradual improve in whale outflows for the reason that begin of 2025, suggesting that giant holders have been constantly trimming their positions. Over the previous 14 days, over $1 billion in positions have been offloaded at a mean value of $2.10.

Related: How many US dollars does XRP transfer per day?

Can XRP maintain the $2 help?

XRP has discovered help at $2 a number of occasions over the previous few weeks, however the likelihood of the altcoin dropping under this degree will increase with every retest.

Nonetheless, on the decrease timeframe (LTF) of the 1-hour and 4-hour charts, a bullish divergence might be noticed for XRP. A bullish divergence happens when the value types a decrease low and the relative energy index (RSI) types a decrease excessive.

With a good worth hole between $2.08 and $2.13, XRP may see a reduction rally into this vary, particularly if the broader crypto market undergoes an oversold bounce. On the upper timeframe chart, XRP seems bearish as a result of formation of an inverse head-and-shoulders sample, with a measured goal close to $1.07.

There’s a likelihood that the altcoin finds help from the 200-day shifting common (orange line) across the $1.70 to $1.80 mark, however XRP value has not examined this degree since Nov. 5, 2024.

Related: Bitcoin drops 8%, US markets shed $2T in value — Should traders expect an oversold bounce?

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.