What Challenges Are Hindering XRP’s Early December Recovery?
Despite a 10% early December gain, XRP faces headwinds from high ledger velocity, dominant short positions, and potential selling by Korean investors.Summary
XRP has seen a 10% recovery in early December, aligning with the broader market, but several concerning factors could limit further gains. A major concern is the sharp spike in XRP Ledger Velocity, indicating high trading frequency rather than long-term holding, which suggests potential volatility if negative catalysts emerge. Furthermore, the derivatives market shows heavy selling pressure due to a surge in short positions, with funding rates remaining negative, suggesting bearish sentiment. Analyst PelinayPA predicts this short pressure increases the probability of XRP retesting the $2.0–$1.9 zone. Selling pressure could also stem from Korean investors, as XRP balances on Upbit have reached a three-month high, nearing 2025 levels. The primary counterweight to this selling pressure is the sustained positive net inflows into XRP ETFs, further bolstered by Vanguard ending its crypto ban and allowing XRP ETF trading in December.
(Source：BeInCrypto)