XRP recently reached a new all-time high (ATH) of $3.66, fueled by a strong market-wide rally and growing investor interest. Over the past week, the altcoin surged 27%, climbing to $3.50 at the time of writing. 

However, the bullish momentum is weakening as new investors are retreating, suggesting a shift toward correction.

XRP Investors Are Heavy On Selling

Within the past 48 hours, the number of new XRP investors sharply declined from 11,058 to 3,930. This sudden drop indicates waning interest from market participants who had earlier contributed to the rally.

The earlier surge in new wallets signified rising confidence, but the rapid decrease points to skepticism about further upside.

Such behavior is common after price peaks, as investors wait for clearer signals before committing capital. Since new investors often drive short-term price movements, their retreat hints at slowing momentum.

With XRP failing to maintain demand above its ATH, the likelihood of consolidation or reversal increases.

The HODLer net position change for XRP shows red bars for the past two days, indicating that long-term holders (LTHs) are beginning to sell. This marks the first sell-off by LTHs in more than a month. Given their historical role in sustaining price stability, their shift in behavior is a warning sign.

These sales usually reflect a loss of confidence in continued price growth or an opportunity to lock in profits. Since long-term holders influence market sentiment, their decision to offload XRP could accelerate downside pressure.

As a result, XRP could experience increased volatility in the short term.

Can XRP Price Form a New All-Time High?

XRP is currently trading at $3.50, maintaining gains from a strong week but showing signs of slowing momentum. The altcoin is only 4% away from retesting its ATH of $3.66. However, it may struggle to sustain current levels if investor sentiment continues to shift.

If the outflow of new and long-term investors continues, XRP could lose support at $3.38. A breach of this level may lead to further losses, potentially dragging the price down to $3.00 and reversing recent gains. The lack of buying interest would validate the bearish outlook.

However, if demand rebounds, XRP could stabilize above $3.38 and mount another attempt at breaching $3.66. A successful breakout would push the altcoin to $3.80, marking a new ATH and invalidating the correction thesis.