XRP has been on a downward trajectory ever since it hit an all-time high of $3.40 on January 16th. Currently priced at $2.18, the digital asset has experienced a 35% decline in value over the past two months.

This significant drop has resulted in a decrease in the number of XRP tokens held at a profit. Recent on-chain data indicates a growing pessimistic sentiment towards the altcoin, suggesting a prolonged period of decline.

XRP is experiencing a decline in new demand, indicating a slowdown in market interest. The total supply of XRP held at a profit has decreased by 6.39 billion in the last week, hitting a low for the year.

With 87.95 billion tokens out of a total supply of 99.98 billion currently held at a profit, it is evident that some investors are now facing losses on their XRP holdings. This surge in selling pressure and weakening market sentiment is further confirmed by the dwindling number of new XRP purchases observed recently.

Only 4,516 new wallet addresses were created on Sunday for trading XRP, marking the lowest daily count of new demand since the beginning of the year. A drop in new demand signifies a decrease in investor interest, leading to reduced trading activity and weaker price support in the spot market.

As XRP struggles against selling pressure, the possibility of breaking its downward trend is uncertain. The price currently lingers at $2.17, well below the descending trendline. If the bearish momentum continues, the value of XRP could potentially drop below $2 to $1.47.

On the other hand, a resurgence in buying pressure could propel XRP to break above the descending trendline and surge to $2.93. The future direction of XRP remains unpredictable as market dynamics and investor sentiment continue to shape its trajectory.