Ripple’s XRP experienced a modest revival last week, with its price reaching up to $2.40. However, this momentum was halted, and the asset now struggles to stay above $2.30.
What’s more concerning for XRP’s potential in the coming weeks is the behavior of whales and long-term holders. Notably, this cohort of investors is showing a different approach compared to previous market cycles.
According to data from Glassnode, XRP holders typically realized profits during rallies in the past. For example, during the run to a new all-time high in July this year or the surge to $3.40 in January, investors cashed out portions of their holdings. However, this time around, the pattern has changed. Long-term holders have been disposing of substantial portions of their tokens as XRP’s price has been in evident decline since late September.
This trend aligns with other reports indicating that whales are selling en masse. The latest report, from just yesterday, revealed that approximately 500,000 XRP tokens were offloaded within a span of just 48 hours.
The timing of these large-scale sales is intriguing and somewhat unexpected, especially considering recent developments on the Exchange-Traded Fund (ETF) front. Many companies have updated their S-1 filings with the US Securities and Exchange Commission (SEC) to remove “delayment amendments.” This change allows the ETF to launch directly after a 20-day waiting period unless the Commission raises objections.
The first ETF product with a chance to launch under this new timeline is Canary Capital’s application, which could see approval as early as this week (starting November 13).
As a result, the behavior of whales and long-term holders may represent a classic “buy-the-rumor, sell-the-news” strategy. In this scenario, they anticipate that XRP’s price might drop after the ETFs officially launch, prompting them to sell before that happens.
https://bitcoinethereumnews.com/tech/xrp-profit-taking-divergence-signals-more-pain-ahead-for-ripples-price/
