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XRP Saviors: Long-Term Holders Could Help Price Escape From 3-Week Downtrend

XRP Saviors: Long-Term Holders Could Help Price Escape From 3-Week Downtrend

BeInCryptoBeInCrypto2025/06/04 09:00
By:Aaryamann Shrivastava

XRP's price recovery depends on long-term holders maintaining their positions. If they can avoid selling, the price might break through resistance and rise. However, persistent selling could prolong the downtrend.

XRP has faced a significant decline recently, reaching a low of $2.07 before attempting a modest recovery. While the altcoin is currently showing signs of recovery, it could face challenges in breaking out of the three-week downtrend. 

However, key holders, particularly long-term holders (LTHs), could play a critical role in supporting a potential breakout.

XRP Investors Are Selling

The MVRV Long/Short Difference indicator recently moved back into the positive zone after almost a month, signaling an uptick in long-term holder (LTH) profits. LTHs are traditionally more patient with their investments compared to short-term holders (STHs), which means they are less likely to sell during short-term fluctuations. 

As a result, their conviction in holding XRP provides a stabilizing force against sharp price declines. The presence of LTHs maintaining their positions can also provide the necessary support for a price recovery, potentially breaking XRP out of its current downtrend.

XRP Saviors: Long-Term Holders Could Help Price Escape From 3-Week Downtrend image 0XRP MVRV Long/Short Difference. Source:  Santiment

However, the broader macro momentum of XRP reveals some cautionary signs. The Coin Days Destroyed (CDD) indicator recently spiked to its highest point since January of this year. The CDD metric measures the number of coins held by LTHs multiplied by the number of days they’ve been held before being sold, effectively destroying the accumulated days.

The recent spike indicates that these holders are selling, which could weigh negatively on XRP’s price.

This selling behavior from LTHs could suggest that some investors are locking in profits or expressing concern over the altcoin’s near-term performance. A continued increase in CDD could lead to further selling pressure, limiting XRP’s ability to recover fully and potentially leading to more downtrend action.

XRP Saviors: Long-Term Holders Could Help Price Escape From 3-Week Downtrend image 1XRP Coin Days Destroyed. Source: Glassnode

Can XRP Price Breakout?

XRP’s price has been in a downtrend for the last three weeks, marking its third such occurrence. The altcoin recently rose by 5% over the past five days, reaching $2.24. Despite this rise, XRP remains under pressure from the broader market and internal selling pressure. This makes it vulnerable to further declines without strong support.

The presence of LTHs in profit is promising for a potential rebound. However, their ability to rein in selling is essential for XRP’s continued upward movement. If LTHs can avoid selling during this crucial phase, XRP could flip $2.27 into support, paving the way for a move towards $2.38. 

XRP Saviors: Long-Term Holders Could Help Price Escape From 3-Week Downtrend image 2XRP Price Analysis. Source:  TradingView

However, if selling pressure persists, the altcoin could fail to break the downtrend. This could send XRP to return to $2.12 or even lower. Monitoring LTH behavior in the coming days will be crucial for determining the altcoin’s short-term direction.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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