Selling Ripple (XRP) Now Makes No Sense: Analyst Explains Why

Ripple’s cross-border token, alongside most of the cryptocurrency market, has fallen hard over the past several months, dropping by more than 40% since its July all-time high of $3.65.

However, a popular analyst known for backing the token has outlined several reasons why investors should remain strong during this ongoing correction and refrain from selling XRP.

Don’t Sell

ERGAG CRYPTO noted that even if investors believe the bear market has started, they should retain possession of their XRP tokens. The analyst justified his call by outlining that this is an emotional sell zone and not a fundamental one.

They added that smart money sells into strength and urged people to maintain their positions even if fear is the predominant emotion, as “historical XRP cycles always gave a relief move.”

Although the analyst admitted that this could indeed be the beginning of a bear market, they noted that the current structure shows a reset, not a collapse. And, if this is just another correction, then selling now would be “fatal.”

So, Who Is Selling?

Before we answer that question, let’s emphasize who is not selling – investors getting XRP exposure through the five spot ETFs in the United States. The financial vehicles’ impressive streak of only green days continues ever since the first such product, Canary Capital’s XRPC, hit Wall Street on November 13. The total net inflows have risen to $1.060 billion, with more than $30 million entering the funds on Thursday.

And now, back to the original question, and perhaps the most obvious and painful answer is whales. As Ali Martinez updated earlier this week, these large investors had disposed of almost 1.2 million tokens in just a month. Before that, they had sold off another batch of more than 1.5 million.

It’s worth noting that their selling spree began right around the time it became known that XRP will have its own exchange-traded funds tracking its performance. And, its price has tumbled by more than 25% since XRPC’s debut day, even though the ETFs have joined the billion-dollar club.

XPR currently trades below $1.90, which has been categorized as a key support in determining its upcoming moves. If it fails to overcome it soon, then analysts believe it could plunge all the way down to $1.00.

The post Selling Ripple (XRP) Now Makes No Sense: Analyst Explains Why appeared first on CryptoPotato.