Profit and new investors in XRP fall – Is the price about to adjust?

In recent days, XRP has mainly been trading sideways, struggling to find momentum amid the bleak crypto market. The absence of bullish signals across the market has led this token to continue accumulating around key support zones.

Selling pressure is increasing as investor participation and profitability are both declining, raising concerns about the possibility of a downward adjustment in the near future.

XRP investors are cautious, new capital flows are weakening

The number of new XRP addresses has decreased significantly, reflecting a decline in interest from new investors. Earlier this month, the number of new XRP wallets surged to the highest level in four months, but has now plummeted to around 6,336. The slowdown in growth indicates that most new investors are no longer keen on participating in the crypto market at the current price level.

The decrease in the number of participants may weaken liquidity and hinder the price recovery process. Without new capital inflows, the necessary demand to drive the price of XRP higher will be hard to come by. If this trend continues, it may continue to fluctuate within a narrow zone.

New address of XRP | Source: GlassnodeThe MVRV Long/Short spread index is currently near 3%, indicating that profits for long-term investors are shrinking. According to historical data, a positive value of this index usually reflects good profitability, whereas a declining value indicates that profits are gradually decreasing. The recent decline is a sign that even veteran investors are facing lower profitability.

If long-term investors start to take profits or withdraw from the crypto market, selling pressure on XRP will increase. The continuous decline of the MVRV index is often accompanied by a skeptical sentiment, increasing the risk of minor corrections.

Long/Short XRP MVRV Spread | Source: Santiment## XRP needs new momentum to break out

Currently, XRP is trading around $2.41, holding above the important support zone at $2.28, but still unable to maintain bullish momentum due to weak participation from investors.

With the current technical signals and on-chain data, if selling pressure continues to increase. A drop below $2.13 will reinforce the bearish trend and extend the recovery period.

XRP price chart | Source: CoinphotonConversely, if investor confidence improves and new capital flows back in, XRP could convert the resistance level of $2.36 into a solid support zone. At that point, it will have the opportunity to target higher price points like $2.45 or even $2.52, signaling a return of bullish sentiment and denying the current bearish argument.

Mr. Giáo