Alarming Shift: Korean Traders Turn Bearish on XRP Despite High Profitability – Market Analysis

Cryptocurrency markets are known for their volatility, and XRP is no stranger to dramatic price swings. Recently, XRP experienced a significant drop from its cycle peak, yet a large portion of its supply remains in profit. This might sound like good news, but a closer look reveals a concerning trend: Korean traders, who have historically been significant players in the XRP market, are showing signs of turning bearish. Let’s dive into the data and understand why this shift in sentiment could signal a potential price correction for XRP.

XRP Profitability Remains Strong, But Cracks Are Showing

Despite a recent 46% price decrease from its peak on January 16, 2025, data from Glassnode indicates that a substantial 81.6% of the circulating XRP supply is still in profit. This is a noteworthy figure, especially when compared to other major cryptocurrencies. Let’s see how XRP stacks up against its peers:

• Tron (TRX): Leads the pack with an impressive 84.6% profitable supply.
• XRP: Solidly in second place with 81.6% of its supply in profit.
• Bitcoin (BTC): Trailing behind at 76.8% profitable supply.
• Ethereum (ETH): Significantly lower at 44.9% profitable supply.
• Solana (SOL): The lowest among the group with only 31.6% profitable supply.

This data suggests that many XRP holders are still sitting on gains, even after the recent market downturn. However, this seemingly positive picture is being clouded by emerging bearish signals, particularly from South Korea.

Why Are Korean Traders Turning Bearish on XRP? The Upbit Factor

South Korea has long been recognized as a vibrant and influential cryptocurrency market. Korean traders often play a crucial role in shaping the price action of various digital assets, and XRP is no exception. In early February, when XRP dipped below $2, Korean investors, primarily on the Upbit exchange, stepped in to buy the dip, helping to push the price back up to $2.89.

However, recent data reveals a stark shift in sentiment. According to anonymous market analyst Dom, Korean traders on the XRP/KRW pair have executed a massive 1.4 million trades between April 6th and 7th. Alarmingly, 62% of these trades were sell orders, resulting in a net outflow of $120 million worth of XRP from the Korean market. This significant selling pressure suggests a growing bearish outlook among Korean investors.

This selling trend could be attributed to several factors:

• Profit Taking: Despite the recent correction, a large portion of XRP holders are still in profit. Korean traders might be choosing to lock in these profits, especially if they anticipate further price declines.
• Market Uncertainty: The broader cryptocurrency market has been experiencing volatility and uncertainty. Concerns about regulation, macroeconomic factors, and potential further corrections could be prompting Korean traders to reduce their exposure to riskier assets like XRP.
• Shifting Sentiment: Retail confidence in XRP might be waning, as indicated by reports of long-term whales and new investors offloading their holdings. This could be contributing to a more negative perception of XRP’s future price prospects among Korean traders.

Technical Analysis: Is an XRP Price Correction Imminent?

From a technical analysis perspective, the situation for XRP looks precarious. The higher time frame (HTF) chart recently saw XRP lose its crucial $2 support level, dropping to a yearly low of $1.61 on April 7th. While XRP managed to reclaim the $2 level on April 9th, the overall market structure appears bearish across multiple timeframes.

A critical point to watch is the 200-day moving average. As illustrated in the original article’s chart, XRP is potentially on the verge of closing a daily candle below this key moving average (the orange line). Historically, breaking below the 200-day moving average can signal the start of a prolonged correction period. If XRP fails to hold above this level, we could see further downside pressure in the coming weeks.

Key Levels to Watch:

• Support: The immediate support level is around $2. However, if this level breaks, the next significant demand zone lies between $1.63 and $1.27 (the blue box mentioned in the original article). This zone could represent an area where accumulation might occur if the price continues to decline.
• Resistance: The 200-day moving average currently acts as a key resistance level. For XRP to regain bullish momentum, it needs to convincingly break above this level and sustain gains.

Navigating the XRP Market: What Should Traders Do?

The current situation in the XRP market presents a mixed bag of signals. While a large percentage of the supply is in profit, the emerging bearish sentiment from Korean traders and the precarious technical outlook cannot be ignored. So, what are the key takeaways and actionable insights for traders?

• Stay Informed: Keep a close eye on market data, particularly trading activity on Korean exchanges like Upbit. Monitor key technical indicators and price levels, especially the 200-day moving average and the support zone between $1.63 and $1.27.
• Manage Risk: Given the uncertainty and potential for further correction, prudent risk management is crucial. Consider adjusting your portfolio allocation, setting stop-loss orders, and avoiding over-leveraging.
• Consider Long-Term Perspective: While short-term price action might be concerning, remember that cryptocurrency markets are cyclical. Focus on your long-term investment strategy and conduct thorough research before making any trading decisions.
• DYOR (Do Your Own Research): This article is for informational purposes only and does not constitute investment advice. Always conduct your own independent research and consult with a qualified financial advisor before making any investment decisions in the cryptocurrency market.

Conclusion: A Cautious Outlook for XRP

While XRP’s high profitable supply might seem reassuring at first glance, the alarming shift in sentiment among Korean traders, particularly on Upbit, presents a significant headwind. Coupled with a weakening technical structure, the potential for a prolonged price correction cannot be ruled out. Traders should exercise caution, stay informed, and manage their risk effectively as they navigate the evolving XRP market. The coming weeks will be crucial in determining whether XRP can weather this bearish pressure or if further downside is on the horizon.