Ripple price prediction: XRP rise trend weakens facing "pullback" risk, new investors start to withdraw.

Ripple (XRP) recently reached a historic high of $3.66, thanks to the strong bullish momentum in the market and the growing interest from investors. Over the past week, the altcoin has risen by 21%, and as of today (21), it is reported at $3.50 during the Asian afternoon session. However, as new investors begin to withdraw, signs of a weakening upward trend are emerging, indicating that the pullback risk is approaching.

XRP investors strengthen selling pressure

In the past 48 hours, the number of new investors holding XRP has sharply declined from 11,058 to 3,930. This sudden drop indicates that the interest of investors driving the price pump is cooling down.

Previously, the surge in new wallet activations reflected an increasing market confidence, but the current rapid decline indicates skepticism in the market regarding the possibility of further rises.

This behavior is quite common after the price peaks, as investors often wait for clearer signals before continuing to invest. New investors typically play an important role in driving short-term price trends, so their exit may indicate that the bullish momentum is weakening.

Due to XRP's inability to maintain demand above the new high, the possibility of entering a consolidation or reversal phase is clearly increasing.

(Source: Santiment)

In the past two days, the net position change data for XRP holders has shown red bars, indicating that long-term holders (LTH) have begun to sell off. This is the first sell-off by LTH in over a month. Given LTH's historical role in maintaining price stability, this change in behavior is a clear warning sign.

The sell-off by LTH groups usually reflects a loss of confidence in the continued bullish momentum, or it is merely a realization of profits in anticipation. Since LTHs have a significant impact on market sentiment, their sell-off of XRP will create greater selling pressure in the near future.

Therefore, XRP may face greater volatility in the short term.

(Source: Glassnode)

Can the XRP price hit a new high?

XRP is currently trading at $3.49, having retained most of last week's gains, but it also shows signs of slowing growth momentum. The altcoin is about 8.7% away from its historical high of $3.84, but if investor sentiment remains low, it may struggle to maintain the current price range.

If new and old investors continue to withdraw funds, XRP may lose the support level of $3.38. A drop below this level could lead to further declines, potentially dropping to $3, erasing recent gains.

The lack of clear demand will strengthen the bearish scenario in the short term.

However, if demand rises, XRP may stabilize above $3.38 and attempt to break through $3.66 again. If the breakout is successful, the altcoin may surpass $3.8, setting a new high and breaking through the current pullback pattern.

(Source: Trading View)