Institutions are buying, so why isn't it rising? What is the identity of the sell wall preventing XRP from breaking $1.50?

▲ XRP/AI-generated image ©

Despite strong buying pressure from institutional investors and the major positive news of spot ETF fund inflows, XRP (Ripple) is struggling to break out of its range, blocked by a solid sell wall at $1.50.

According to crypto media outlet Finbold on April 21 (local time), XRP has attempted to break $1.50 four times since the collapse of its $1.80 support level earlier this year, but all attempts have failed. The current price has been stuck in a narrow horizontal range between a low of $1.33 and a high of $1.50 for approximately three months, continuing a tedious sideways trend.

Recently, new fund inflows into XRP spot ETFs were confirmed, causing the price to rebound near $1.50, but it hit strong resistance and fell back to the $1.44 level. Despite renewed institutional demand, a lack of overall market conviction seems to have caused it to lose momentum for a breakout.

Experts cite the weakening available liquidity on Binance, the world's largest exchange, and an increase in exchange reserves as the main reasons for this sluggish trend. According to Finbold's analysis, XRP reserves on Binance have steadily increased over the past nine months, exacerbating market selling pressure.

Looking at the specific figures, Binance's XRP holdings have increased from 2.658 billion at the beginning of the year to 2.755 billion as of April 20. The sharp increase from approximately 2.553 billion over the past three months, in particular, suggests that investors are taking profits and offloading their holdings whenever the price rises.

Ultimately, for XRP to embark on a true bull rally, a trend reversal with a significant decrease in exchange holdings is essential. Traders should closely monitor exchange reserve metrics to determine whether a mere short squeeze (buying pressure occurring to liquidate or cover short positions) has created a temporary bull trap, or if a solid upward momentum has been established.

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