Ripple price prediction: XRP faces a $2.81 billion dumping wave, investors lack confidence entering sideways consolidation.

Ripple (XRP) has recently reached a historic high, followed by a sideways consolidation phase. Today (23rd) in the Asian morning session, it is reported at 3.49 USD. Analysts warn that XRP may experience a price reversal trend under a dumping wave of 2.81 billion USD, as a lack of confidence among investors has led to a sideways consolidation phase.

XRP investors lack confidence

Investors have begun to sell off a large amount of XRP, indicating that confidence in its further increase is waning.

In the past week, nearly 450 million XRP flowed into exchange wallets, worth over 2.81 billion USD. The surge in supply indicates that holders are transferring assets to exchanges with the intention of dumping, which is typically a bearish signal in market cycles.

Profit taking seems to be due to concerns that XRP has peaked in the short term. As investors seek to lock in profits, the pressure on XRP's price will increase. Continued dumping may push the price below recent support levels, making a rebound more difficult.

(Source: Glassnode)

Glassnode's on-chain data further strengthens the bearish sentiment. The Active Supply Index, used to track Long-Term Holder (LTH) behavior, is currently at a three-month high. This indicates that LTHs are currently dumping XRP. The change in their behavior suggests potential downward pressure.

Historically, an increase in the activity index often precedes market adjustments.

Due to the large supply held by LTH, their decisions have a significant impact on price trends. The rise in the activity index reflects a major change in market prospects, which is consistent with the recent increase in exchange supply and the weakening of bullish sentiment.

(Source: Glassnode)

Can XRP continue to reach new highs?

XRP is currently trading at around $3.49, just about 4% away from its all-time high. Despite being close to its historical peak, this altcoin has shown signs of weakness and is holding on to the support level of $3.38. Without new buying pressure, XRP is unlikely to maintain this level.

If investors continue to sell, the price may fall below $3.38 and test the support level of $3.00, thereby erasing some of the recent upward momentum and confirming a short-term bearish reversal.

Breaking below $3.00 may indicate a longer consolidation phase or a deeper correction.

However, if market participants absorb the sold supply and restore demand, XRP may quickly recover.

In this situation, the altcoin is likely to break through $3.66, surpass $3.80, and target $4.00. This move would invalidate the bearish outlook and help XRP reach new highs.

(Source: Trading View)