XRP, 25.24 Million Moved Off Exchanges... Did Retail Investors Who Sold at 15-Week Low Get Burned Again?

▲ XRP/AI generated image

A reversal trend has emerged, shaking individual investors who sold near a 15-week low, as XRP moved out of exchanges in a larger volume immediately after the largest exchange inflow this year.

According to U.Today, a cryptocurrency specialized media outlet, on May 31 (local time), Santiment's on-chain data captured a trend where 25.24 million XRP moved out of exchanges over the weekend. This outflow occurred immediately after the largest XRP exchange inflow this year, attracting market attention.

According to Santiment, 25.24 million XRP moved off exchanges from May 29 to 30. Previously, on Thursday, 22.8 million XRP, the largest inflow this year, entered exchanges, and Santiment explained that an even larger volume then moved out of exchanges immediately after that inflow.

The problem is when the 22.8 million XRP moved to exchanges. Santiment pointed out that the large exchange inflow occurred at a local low in XRP's price. U.Today reported that many individual investors made sell decisions at the 15-week low at that time, and subsequently, XRP's trading value increased by 5% compared to the day of the sell-off.

Investor sentiment was also extremely subdued. Earlier, on-chain data showed that the average active XRP trader over the past 30 days was in a loss of approximately 47%. XRP's Market Value to Realized Value (MVRV) for 30 days had fallen to its lowest level since December 2020, and traders' fear and frustration reached rare levels.

Before the sell-off, XRP crowd sentiment had already turned negative. The ratio of positive to negative mentions fell to about 1.1 bullish mentions for every 1 bearish mention. U.Today reported that such signals often preceded strong XRP rebounds in the past.

However, the expectation of a price reversal is not a confirmed trend. As of the time of writing, XRP recorded a 0.33% decrease over 24 hours, trading at $1.33. Cryptocurrency analyst Ali views the lower bound of the ascending channel at $1.34 as a potential buying zone for XRP, stating that if this zone holds, XRP could target $1.37 and $1.40.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*