XRP price is trying to stabilize after a sharp market-wide sell-off. The token briefly dropped near $1.50 before rebounding toward $1.61, following the broader breakdown between January 31 and February 1. On the surface, this looks like a technical bounce and probably the start of something bigger. But on-chain and flow data suggest this recovery is weak. The buyers supporting XRP right now are mostly short-term traders. Broader demand remains weak. Three indicators explain why this rebound could still fai ...

XRP price attempted a rebound a few sessions back, but the move failed to hold. After bouncing from January 20 to January 21, XRP stalled near $1.98 and rolled over again. It now trades close to $1.90, slipping back toward a zone where downside risk is starting to dominate. The chart shows a clear bearish structure forming. Under the surface, capital flows, holder behavior, and exchange activity all point in the same direction. While long-term holders (HODLers) are still buying, profit-taking from other gr ...

Market Dynamics & Investment Strategy - The analysis of HODL waves reveals the percentage of Bitcoin supply that has remained unused in transactions for specific durations [2] - Short-term holders (holding for less than 6 months) often enter during market mania phases and exit quickly when the hype subsides [4][5] - Long-term holders tend to accumulate Bitcoin when the price is stagnant and decrease their holdings during bull runs, selling to short-term holders [7][8][9] - Short-term holder peaks often coincide with peaks in Bitcoin's price [9] - Long-term holders accumulate throughout bear markets, even during significant price drops (e g 60-70%), and sell when the bull market arrives [10][11] - Similar HODL wave analysis can be applied to other cryptocurrencies like Ethereum [13] Holder Behavior - Short-term holders often buy at market tops and capitulate during downturns [12] - Long-term holders demonstrate patience, accumulating during bear markets and profiting during bull markets [10][11] Data Insights - Less than 1-2% of the total Bitcoin supply is held for less than a day [3] - Approximately 17% of the Bitcoin supply is held for between 6 months and 1 year [3]