Coinpaper
2026-01-20 14:32:19

Fresh Capital, Stalled Holders — XRP’s Tense Setup

XRP Market Dynamics Signal Pressure on Long-Term Holders According to market analyst Zizcrypto, XRP’s current market setup indicates a landscape where short-term participation is active, while older holders are struggling underwater. Well, this market structure bears a striking resemblance to February 2022, suggesting that XRP may be navigating a critical juncture in its price cycle. Data shows that recent buyers, those entering the market within the one-week to one-month (1W–1M) window, are accumulating XRP at levels below the cost basis of the six- to twelve-month (6M–12M) cohort. In simple terms, newer participants are purchasing XRP at lower prices than earlier buyers, creating a layered market where older holders face unrealized losses. This setup inherently builds psychological pressure on those who purchased XRP earlier, as they weigh the decision to hold or sell in the face of underperformance. Zizcrypto highlights that when new buyers enter below the cost basis of older holders, failure to rebound quickly can trigger selling. This tension between short-term traders and long-term holders means that if XRP’s price doesn’t recover, older investors may offload, intensifying downward pressure. XRP is currently trading at $1.93 per CoinCodex data, showing a market of cautious accumulation. New buyers are stepping in, but long-term holders face pressure, making price stability crucial to sustain momentum and prevent older investors from capitulating. Historical market patterns often signal upcoming volatility. In February 2022, a similar structure triggered brief price consolidation before a fresh surge. Therefore, recognizing these dynamics reveals buying and selling pressures and highlights how market psychology drives price movements. Notably, XRP’s market is showing a clash between short-term buyers accumulating below cost and long-term holders underwater. At $1.93, the price faces a pivotal test: can new buying stabilize it, or will long-term holders offload, adding pressure? Conclusion XRP’s market shows tension between short-term accumulation and long-term holders in the red. New buyers at lower prices are creating psychological pressure on older investors, making stability critical. How XRP balances renewed upward momentum against potential long-term selling will shape its next major move, key intel for traders aiming to navigate volatility and position strategically.

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