XRP Faces $120M Sell-Off As Korean Traders Dump 62% Of Orders

Recent trading activity has revealed a shift in sentiment among XRP investors, with rising sell pressure on South Korean exchanges like Upbit and Bybit indicating a potential bearish trend. Despite 81.6% of XRP’s supply remaining profitable, the growing number of sell orders suggests that many traders are looking to capitalize on recent price movements. This sell-off coincides with significant trading volume, reinforcing concerns over the sustainability of XRP’s current price levels.

Major sell pressure has emerged in XRP trading, with a substantial outflow worth $120 million between April 6 and April 7. This behavior contrasts with earlier market patterns where Korean investors played a pivotal role in supporting XRP’s price trajectory. The reported sell orders surpassed 1.4 million, predominantly from Korean traders, who executed approximately 62% of sell orders. This reversal in sentiment is alarming to many market watchers, as XRP’s price briefly fell below the critical support level of $2 before managing to claw back to $2.10. Many investors seem to view this as an opportunity to take profits, as the data from other assets further illustrates. For instance, TRON (TRX) outperformed XRP with 84.6% of its supply still profiting; Bitcoin (BTC) and Ethereum (ETH) lagged behind at 76.8% and 44.9%, respectively. Such dynamics could suggest that XRP’s recent struggles might not be isolated, reflecting broader trends within the cryptocurrency market.

The pressure from long-term holders, often referred to as “whales,” selling significant portions of their XRP holdings has compounded the bearish sentiment. Reports of over $1 billion in positions liquidated at an average of $2.10 from these stakeholders raised alarms about retail confidence. Coupled with the findings from Cointelegraph, the outflow of capital raises critical questions about market stability and the potential for sustained recovery.

XRP is at an essential juncture in terms of technical price movements. The altcoin witnessed a drop to $1.61 on April 7—a dip that represents a new yearly low—before reclaiming important psychological support at $2. For many technical analysts, sustaining above this level is key; failure to do so could invite further declines. The ongoing analysis suggests that XRP may be gearing up for a further correction, especially if it closes below its 200-day moving average. Traders will closely monitor the key supply zone ranging from $1.63 to $1.27, where potential accumulation phases could occur.

In summary, while XRP displays a significant percentage of profitable supply, the increasing sell pressure indicates that many traders are reassessing their positions amidst rising fears of market correction. The balance of trading sentiment, alongside critical technical levels, will be crucial in determining XRP’s trajectory in the weeks ahead. For investors, keeping informed about market trends and trading behavior will be vital to navigate these uncertain waters efficiently.