After failing to rally above a crucial supply wall around $1.50, XRP price faces a further sell-off amid low investor interest.
XRP price fell 4.10% in the past seven days, trading at approximately $1.38 on April 28. As such, the token’s market capitalization dropped by $3.34 billion, representing a 3.78% decline over the past seven days, to hover about $85.1 billion at press time.
The large-cap altcoin could be aiming to retest a multi-week ascending support level, as Finbold explained. Despite notable inflows into spot XRP exchange-traded funds (ETFs) earlier this month, as Finbold previously reported, the token’s bullish momentum has gradually faded.
XRP price falls due to reduced investor demand
The main reason why XRP price has fallen this week is due to notable selling pressure from whale investors. Over the past week, whales with account balances of 1-10 million tokens reduced their holdings by 1.1 billion units, valued at about $1.518 billion at press time, according to data from Santiment shared by Ali Martinez.
As the XRP whales reduced their holdings by nearly 12% over the past week, the token’s net supply on crypto exchanges increased. During the past 24 hours, the altcoin’s supply on top 41 crypto exchanges surged by more than 3.9 million units, hence the available units for sale surged to 16.123 billion, as per updates from X user @Chachakpbe4er.
Historically, an increase in a token’s supply on all crypto exchanges has been attributed to bearish sentiment and vice versa. As such, if XRP whales continue to distribute more units at current levels, a further sell-off could be inevitable. However, if the whales begin to accumulate more tokens again, a possible rebound from the ascending support level is likely.
