Why XRP stalled at $3: Ripple’s asset sees another spike in bearish comments

XRP remained one of the few assets with a net loss for the third quarter. The token stalled at around $3, and is starting to invite even more bearish comments. 

XRP remains one of the most stagnant assets, with no new all-time highs for months. Ripple’s token stalled at just under $3, while the rest of the market set new records. 

Based on Santiment data for social media mentions, XRP is also receiving the most bearish comments. Small traders have remained relatively bearish on XRP for months, accelerating their bearish comments in the past days. 

Crowd sentiment can often go against the moves of whales, meaning XRP could bounce despite the negative comments. Even after the comments, smart money show a more bullish attitude to XRP compared to crowd traders. XRP supporters also still hold the narrative that Ripple and the token will be key to on-chain finance, expanding the network’s utility. 

XRP maximalists still await a breakout, as the asset has shown its ability to fly even after years of sideways trading during bear markets. 

XRP lags despite the ETF narrative

XRP remained one of the assets with the highest probability for ETF launches coming soon. The approvals may now be delayed as long as the USA government shutdown continues. 

Recently, Granite Shares added another potential ETF to the mix with a new application. XRP is now seen as fully regulated and suitable for ETF trading. Crypto natives, however, are still not confident enough about the asset. 

Despite the application, XRP took a step back to $2.85, while open interest decreased to $3.11B, from a peak of $4.7B in July. 

In the short term, XRP moved down and liquidated available long positions. A return is possible, though liquidity is only available up to $3, based on the token’s liquidation heatmap. XRP had limited liqudations in the past day compared to other assets. Traders remain bullish, with over 80% going long, though the positions may still invite attacks and liquidations. 

XRP exchange reserves are near a peak

Centralized exchanges are well-supplied with XRP, with reserves near an all-time peak. Overall, XRP has widespred ownership and significant older whales. 

Binance reserves are near an all-time peak, holding nearly 3.6B XRP. In the past few months, XRP also flowed into Bitfinex, as reserves expanded exponentially. 

In the past year, XRP saw multiple periods of whale accumulation. However, the asset also saw periods of active inflows into Binance, as early buyers attempted to take profits. As Cryptopolitan reported earlier, XRP whale holdings dropped to a three-year low, as traders used the recent rally to shift their portfolios. 

XRP retains a diverse trading profile, recently expanding the role of USDC in trading. The token also has active markets against the Korean won, as well as Binance’s FDUSD stablecoin.

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