XRP Drops 46% in Three Months, Korean Traders Sell $120M

XRP has faced challenges in maintaining bullish momentum since reaching its peak at $3.40 on Jan. 16, 2025, experiencing a 46% drop over the past three months. Despite this decline, data from Glassnode indicates that 81.6% of XRP’s current circulating supply remains profitable. This figure, though down from its year-to-date high of 92%, underscores the retention value for holders despite recent market corrections.

Among other major cryptocurrencies, only Tron (TRX) has a higher profitable supply at 84.6%, while Bitcoin (BTC), Ether (ETH), and Solana (SOL) exhibit 76.8%, 44.9%, and 31.6% respectively. This data highlights the relative strength of XRP in maintaining profitability for its holders.

However, the sentiment among traders in Korea has shifted notably. Data shows that Korean traders, who previously played a significant role in buying the first XRP dip below $2 on Feb. 3, have now turned bearish. Over the past few days, there has been a significant increase in sell orders on the XRP/KRW pair. An anonymous market analyst noted that Korean traders executed 1.4 million trades, with 62% being sell orders, resulting in a net sale of $120 million in XRP between April 6-7. This trend of heavy selling from both long-term whales and new investors suggests a decline in retail confidence in XRP.

The bearish sentiment in Korea is reflected in the broader market as well. XRP's higher time frame chart lost its $2 support, dropping to a new yearly low of $1.61 on April 7. Although the altcoin managed to reclaim this critical level on April 9, the price structure remains bearish on multiple time frames. The potential closure of a daily candle below its 200-day moving average could lead to a prolonged correction period over the next few weeks. The key demand zone, where a period of accumulation might unfold, remains between $1.63 and $1.27.

This shift in sentiment among Korean traders and the broader bearish market structure for XRP highlight the challenges faced by the altcoin. Despite a majority of the supply being in profit, the increasing sell pressure and declining retail confidence pose significant risks. Investors and traders should closely monitor these developments and conduct thorough research before making any decisions.