XRP: Mapping the $45mln supply shock and its impact on ETF demand
XRP is currently trading below its Realized Price, indicating that most holders are at a loss, which reflects weak short-term sentiment and widespread caution. Recent data shows a struggle to reclaim this key psychological threshold, keeping the market in a fragile state. Additionally, external demand has provided little support, with XRP Spot ETF flows weakening and net inflows turning negative in late January, followed by only a modest recovery in February. The lack of substantial ETF inflows has failed to counter selling pressure.
Further exacerbating the situation, over 31 million XRP (worth around $45 million) was recently moved to Binance, primarily by large holders, signaling potential short-term sell pressure. Concurrently, XRP recorded its largest spike in realized losses since 2022, suggesting capitulation as investors sold at a loss out of fear. Historically, such panic selling phases have occurred near market bottoms, and the last time losses were this severe, XRP experienced a strong rally in the following months. While current conditions are challenging, there is potential for a rebound if the asset can stabilize and regain investor confidence.
ambcrypto02/23 11:02