$256M Selloff, But Funding Rates Still Green: Can XRP Bulls Overcome Retail Investor Panic?

XRP has recently experienced a price decline that erased previously gained profits during the week. This decline, along with panicked selling by investors, has increased market concerns.

However, despite these challenges, many traders seem unaffected by recent developments and continue to focus on capitalizing on price increases.

XRP Investors Shift to Selling

In the past 24 hours, investors have sold 116.72 million XRP, valued at over $256 million. This panicked sell-off stems from fears that prices will continue to drop, causing traders to exit the market before facing larger losses. The broad market correction has contributed to this rush to sell as investors attempt to protect their profits.

This large-scale selling indicates increasing uncertainty among XRP investors, especially as this altcoin faces downward price pressure. Despite unfavorable market conditions, traders appear to be acting out of fear rather than clear analysis. This uncertainty could lead to more volatility in the coming days unless a recovery emerges.

Despite the market decline and investor selling, XRP's funding rate remains positive. This is a clear sign that a group of traders still believe in the cryptocurrency's potential, even during a market downturn. These traders are likely betting on future price increases, demonstrating their confidence in XRP's long-term development.

The positive funding rate suggests many believe the decline is only temporary. Their continued support, even in a market correction, emphasizes the potential for XRP to regain momentum. The fact that there is still buying interest indicates traders are focusing on capitalizing on future price increases, which could lead to a recovery.

XRP Price Could Reverse Downtrend

At the time of writing, XRP price has dropped 8% over the past four days, trading at $2.11. This altcoin is holding above the critical support level of $2.08, although recent selling pressure may continue to impact the price.

Losing the local support at $2.08 could trigger a deeper decline for XRP. In this case, the altcoin might even test the $2.00 level, marking a two-month low. Such a move would indicate continued market weakness, causing traders and investors to become more anxious about XRP's future direction.

However, if XRP maintains support above $2.08, it could recover, as it has done in the past. A recovery breaking above $2.13 would signal a potential trend reversal, allowing XRP to rise to $2.20 and potentially nullify the bearish outlook.