Increased Selling of XRP as Short-Term Investors Move Towards Distribution Strategy
The cryptocurrency market is experiencing a delicate moment, and XRP is no exception. According to Alphractal, an advanced investment and on-chain data platform, the current situation for XRP requires careful observation of support levels and potential periods of consolidation or correction prior to stronger long-term movements.
Recent analysis of XRP's on-chain activity reveals that the Net Realized Profit/Loss (NUPL) is still at high levels, approaching those recorded in 2018 and 2021. High numbers in the NUPL chart suggest that there are still a lot of unrealized profits in the market, which often represent zones of possible distribution and price correction. However, Alphractal's analysis also highlights a shift among short-term holders, who are moving from accumulation mode to active distribution mode.
This behavioral shift among short-term investors suggests growing prudence in the face of market turbulence. The short-term holder active supply ratio, as observed by Alphractal, indicates that these investors are currently selling their holdings. These distribution and selling patterns imply that recent buyers are reducing their losses or taking profits, which puts pressure on the market to sell.
Despite this, the overall cryptocurrency market's performance can significantly impact XRP's price movements. If the market starts to rise again, XRP might set a price base and win back investor trust. The positive Growth Rate suggests that speculative inflow is still driving the XRP market, where price growth is outpacing the buildup of underlying on-chain value.
Analysts and market experts predict XRP could rise significantly in the short term, with targets in the $4.50 to $8 range in August 2025, suggesting strong bullish momentum if accumulation by short-term holders continues. Ripple's improving regulatory clarity and supportive on-chain signals enhance institutional and holder confidence, further underpinning accumulation behavior in short- to mid-term holders.
In conclusion, the current short-term outlook for XRP based on short-term holder behavior and on-chain activity reported by Alphractal indicates a phase of cautious accumulation rather than aggressive selling. Short-term holders are showing signs of accumulation and holding, suggesting reduced selling pressure and potential readiness for an upward price move. While the $5 target for XRP remains intact despite the recent price retrace, it is essential to maintain prudence and observe support levels closely.
- The current strategic approach for investors considering cryptocurrency, particularly XRP, should prioritize careful observation of support levels and potential periods of consolidation or correction, given the delicate market conditions and the observed behavioral shift among short-term holders.
- The ongoing crypto market trends can significantly impact XRP's price movements, with speculative inflow playing a crucial role in driving the XRP market, suggesting the potential for a significant price rise in the short term if accumulation by short-term holders continues.
