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 top-of-the-line rallies of the present bull market, gaining 600% as buyers 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 lively addresses jumped by 490% and XRP worth hit a 7-year excessive.

Quick ahead to the current, and knowledge reveals that the speculative curiosity surrounding XRP is declining. Holders are more and more dealing with losses quite 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 worth enhance. Knowledge from Glassnode reveals that XRP every day lively 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 buyers within the final six months. The share of XRP’s realized cap held by new buyers (lower than six months) jumped from 23% to 62.8%, signaling a fast wealth shift. Nevertheless, since late February 2025, capital inflows have dipped considerably.

The first cause is that buyers are presently locking in fewer income and gazing greater 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 may increasingly even be prolonged throughout the broader market.”

In addition to weakening confidence amongst newer buyers, the distribution of XRP amongst whale addresses displays an analogous pattern. Knowledge shows a gradual enhance in whale outflows for the reason that begin of 2025, suggesting that giant holders have been persistently trimming their positions. Over the previous 14 days, over $1 billion in positions had been offloaded at a median worth of $2.10.

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

Can XRP maintain the $2 assist?

XRP has discovered assist at $2 a number of occasions over the previous few weeks, however the probability of the altcoin dropping beneath this stage will increase with every retest.

Nevertheless, on the decrease time-frame (LTF) of the 1-hour and 4-hour charts, a bullish divergence could be noticed for XRP. A bullish divergence happens when the worth varieties a decrease low and the relative power index (RSI) varieties 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 time-frame 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 probability that the altcoin finds assist from the 200-day transferring common (orange line) across the $1.70 to $1.80 mark, however XRP worth has not examined this stage 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 entails threat, and readers ought to conduct their very own analysis when making a call.