XRP Faces Mounting Pressure: Record Outflows & Bearish Sentiment Threaten a Price Plunge!

XRP is under significant pressure as it grapples with its highest level of investor outflows in seven months. The crypto's price, currently trading below a critical resistance, is being squeezed by a combination of waning investor confidence and persistent selling from both short-term and long-term holders. Will this bearish trend accelerate, pushing XRP to new lows, or can the asset find the strength to reverse course?

Record Outflows & Fading Confidence: The CMF Signal 🚨

A major factor contributing to the mounting pressure on XRP is a sharp decline in its Chaikin Money Flow (CMF). This on-chain metric, which measures the volume-weighted flow of money into and out of an asset, has reached a seven-month low. A falling CMF indicates a significant outflow of funds, reflecting a widespread decline in investor confidence and a dominant bearish sentiment. This is a critical red flag, as it suggests that the selling pressure is not just a temporary fluctuation but a deep-seated trend fueled by both new and veteran investors liquidating their positions.

HODLers Head for the Exits: A Bearish Trend Reinforced 💔

The selling pressure on XRP is not just coming from short-term traders; long-term holders (LTHs) are also beginning to exit their positions. This behavior further reinforces the bearish trend, as it signals a loss of faith from the most resilient part of the community. With both short-term and long-term holders selling, the market is facing a supply glut and a lack of buying interest, making it increasingly difficult for XRP to mount a recovery. This confluence of selling signals paints a grim picture for XRP's immediate price trajectory, as the fundamental support from its most loyal holders appears to be wavering.

Critical Levels & The Path to Recovery 📈

With XRP currently trading below the key resistance level of US$2.95, its path forward is precarious. If the current bearish trend persists, the price is expected to test the support level of US$2.65. A drop below this point could accelerate the downtrend. However, for a recovery to be possible, XRP must first reclaim US$2.95 as a support and then decisively break through the US$3.00 psychological barrier. A successful breakout above US$3.00 could invalidate the bearish outlook and open the door for a recovery towards US$3.41. The coming days will be a crucial test of strength, determining whether XRP can find a floor or if it will be driven to new lows by the prevailing bearish forces.

Conclusion

XRP is facing significant downward pressure, driven by record investor outflows and a decline in investor confidence, as reflected in a seven-month low for its CMF. The selling pressure from both long-term and short-term holders is reinforcing a bearish trend that could push the price towards the US$2.65 support level. The path to recovery is narrow, requiring a strong reversal in investor sentiment and a breakout above key price levels. Without these catalysts, XRP remains vulnerable to further price drops.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.