- The price of XRP could drop to $0.48 after a ton of holders sold the token.
Volatility spiked, network activity slumped, indicating that recovery
As a seasoned crypto investor, I’ve seen my fair share of market fluctuations, and the current trend in XRP is causing me some concern. The data from Santiment indicating that addresses holding 100,000 to 1 million XRP have been selling off their tokens could signal a potential drop in price. Last week, XRP showed some promising gains, but these have been erased as of late.
According to AMBCrypto’s analysis of data from Santiment, wallets containing between 100,000 and 1 million XRP tokens have been reducing the amount they hold.
I’ve noticed an interesting shift in the distribution of XRP holdings as of now. According to on-chain data, the group of investors holding between 100,000 and 1 million XRP represents 11.01% of the entire circulating supply. Additionally, a decrease in balances among addresses within the 10,000 to 100,000 XRP range has brought their percentage up to 11.27%.
XRP begins the path down
I’ve observed an intriguing price movement in XRP over the past week. The token saw a noteworthy increase from $0.48 to $0.52 within just a few days. Yet, recently, XRP has started to give back some of those gains.
As the balances decrease, there’s a risk that the token’s price may drop beneath the $0.50 mark. Currently, the token is priced at $0.51, suggesting that this downward trend has already begun.
Although this particular metric doesn’t provide a definitive answer about whether XRP will keep declining, it’s worth looking into Open Interest (OI) for further evaluation.
Open Interest (OI) signifies the total number of outstanding derivative contracts across all open positions in a market. An uptick in OI indicates an influx of liquidity within the market. This situation suggests that active buyers are exhibiting assertive behavior.
As an analyst, I would interpret a decrease in Open Interest (OI) as an indication that there have been more net positions closed than opened recently. In other words, sellers have been more active in the market, leading to this observation.
Currently, the Open Interest for XRP amounts to $577.63 million across all markets. However, this represents a decrease from the previous day’s figure. Should this trend persist, it may hinder another potential price surge for the token.
The market is no more volatile
Moving forward, investors with expectations of a rising price for XRP may want to exercise caution. Based on current trends, the cryptocurrency’s value might dip down to the $0.50 mark as support.
Should selling intensity increase, there’s a possibility that XRP‘s native token may retreat to a price level of $0.48. Additionally, AMBCrypto analyzed the one-day price fluctuations for further insight.
The speed and magnitude of price changes, referred to as volatility, often occur frequently. When volatility increases along with heightened demand for buying, it can lead to a substantial price rise.
As a researcher observing the cryptocurrency market at this moment, I’ve noticed that XRP experienced a significant increase in one-day volatility following its recent decrease. However, this volatile spike did not appear to be indicative of an imminent price surge. Instead, it could potentially strengthen the downtrend for XRP.
I’ve analyzed the on-chain data and found that there were approximately 35,000 active addresses within the last 24 hours on May 18th. However, at present, this number has decreased to around 33,100.
Is your portfolio green? Check the XRP Profit Calculator
As a crypto investor, I’ve noticed that the number of unique addresses involved in daily transfers for a specific asset, such as XRP, can provide valuable insights into market activity. Historically, an uptick in the number of active addresses has been followed by price growth for XRP.
Based on the recent drop in price, it appears that XRP may not experience significant upward momentum in the near future. Instead, there is a strong possibility that XRP will see a substantial decrease in value over the short term.
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2024-05-20 08:07