Ripple’s XRP saw a temporary recovery last week, but stalled at $2.40. The cryptocurrency is now facing challenges below $2.30.

The outlook in the coming weeks appears troubling as whales and long-term holders exhibit unusual selling patterns compared to previous cycles.

Unlike previous profit-taking phases that correlated with market rallies, since late September, as XRP dropped from $3.09 (~25%) to $2.30, profit-taking surged by ~240%, from $65 million a day to $220 million a day. Translation: Unlike in the past, where profit-taking would coincide with climbs, recent patterns show an upsurge in selling amidst a decline in price.

Market data suggests this current selling behavior indicates weakness. Investors have noticeably been offloading large quantities of tokens as the price has been declining. Glassnode emphasizes that XRP holders previously capitalized on price rallies, such as during the market surge to a new high in July or the rise to $3.40 in January, but now they are divesting significant amounts of their holdings due to the decline since late September.

Adding to the intriguing market dynamics is news surrounding potential ETF launches. Several companies have modified their S-1 filings with the SEC to eliminate delays, paving the way for the ETFs to launch promptly unless otherwise contested. Speculation arises that investors may adopt a paradigm of ‘buy the rumor, sell the news,’ anticipating a decline in XRP prices following the ETF launches.

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Tags: Ripple (XRP) Price