81.6% of XRP Supply Profitable, Yet Korean Traders Turn Bearish

Majority of XRP Supply Profitable, But Bearish Trends Emerge

Despite 81.6% of XRP’s circulating supply remaining in profit, growing bearish sentiment among traders in Korea is raising concerns as sell pressure mounts at the Upbit exchange. This shift follows a significant price drop and highlights the fragile confidence among investors.

Understanding the Current XRP Trading Climate

The recent shift in XRP trading bearish sentiment is significant, as it highlights the evolving dynamics within the cryptocurrency market. XRP, a digital asset that has faced its share of regulatory scrutiny, has seen substantial fluctuations in value since peaking at $3.40 on January 16, 2025. Despite 81.6% of its circulating supply currently being profitable, a downturn in trader confidence, particularly among Korean investors, signals a potential market shift.

The Importance of Market Sentiment

Historically, market sentiment plays a pivotal role in cryptocurrency trends. As recent events reveal, rising sell pressure on platforms like Upbit indicates a growing bearish outlook among traders. This sentiment could stem from earlier trading patterns where Korean investors were instrumental in triggering notable price recoveries, such as after XRP dipped below $2. However, with a net selling of $120 million reported recently, it raises alarms about sustained bullish potential.

Comparative Analysis with Other Cryptocurrencies

When contrasted with other assets, XRP’s market resilience, as shown by its profit supply percentage, remains robust. Nonetheless, the underlying XRP trading bearish sentiment must be monitored, as changes in trader behavior can significantly impact future valuations.

Understanding the Current XRP Trading Bearish Sentiment

Despite 81.6% of XRP’s circulating supply remaining profitable, recent shifts in market dynamics have prompted a XRP trading bearish sentiment, particularly among Korean investors. Since its cycle peak of $3.40 on January 16, 2025, XRP has experienced a staggering 46% decline over the past three months, raising concerns about its future performance.

According to Glassnode data, while the percentage of XRP supply in profit has fallen from a year-to-date high of 92%, it still reflects substantial retention value for investors. Comparatively, Tron (TRX) leads with 84.6% of its supply profitable, while Bitcoin (BTC), Ether (ETH), and Solana (SOL) exhibit 76.8%, 44.9%, and 31.6%, respectively.

Market Dynamics in Korea

Traders in Korea have historically influenced XRP prices. Following XRP’s dip below $2 on February 3, bids on platforms like Upbit and Bybit helped propel prices back to $2.89 by February 13. However, recent data shows a rapid shift, with anonymous market analyst Dom noting that during April 6-7, 62% of 1.4 million trades in the XRP/KRW pair were sell orders, resulting in a net sale that amounted to $120 million.

This trend highlights a growing sell-off, compounded by significant offloading from long-term whales and new investors. As reported by Cointelegraph, over $1 billion in positions were sold off at an average price of $2.10 last week.

Technical Analysis and Outlook

XRP’s higher time frame chart reflects a bearish market structure, especially after dropping below key support levels. The altcoin hit a yearly low of $1.61 on April 7 but managed to reclaim the $2 mark. However, sustaining this level remains critical; prolonged trading below the 200-day moving average suggests further bearish momentum could ensue.

The outlook remains cautious as the primary demand zone lies between $1.63 and $1.27. Crypto enthusiasts are advised to monitor the situation closely as market sentiments continue to evolve.

XRP Trading Bearish Sentiment: Emerging Trends in the Market

Despite 81.6% of XRP’s circulating supply remaining in profit, recent developments indicate a notable shift in the market sentiment towards XRP trading bearish sentiment. The significant sell pressure on the Upbit exchange suggests that investors, particularly in Korea, are increasingly favoring sell positions. While a majority have profited from earlier investments, a looming bearish outlook could signal a broader trend of hesitation among traders.

As XRP recently experienced a steep decline of 46% from its peak, confidence appears to be wavering. The data revealing that 62% of trades conducted on the XRP/KRW pair were sell orders underlines the nervous sentiment among traders. The rapid net selling of $120 million worth of XRP also highlights the impact of whale movements and retail investor behavior on the market.

Industry Implications

This bearish turn may not only affect XRP’s short-term price action but could also have long-lasting consequences for the broader crypto market. Should current trends persist, XRP’s critical support levels may face increased pressure, emphasizing the need for a reassessment of strategies by both investors and enthusiasts alike.