- Whales lost interest in XRP as the price dropped.
- Development activity also declined significantly.
Ripple (XRP) has been in the headlines for all the wrong reasons over the past few weeks. From battles with regulatory bodies to scathing reviews from analysts, XRP was not having a good time.
whales sail away
To add insult to injury, whales have begun to move into the XRP market, and it is raising questions about the future trajectory of the cryptocurrency.
Recent blockchain data revealed a significant transfer of 24,118,600 XRP from Bitvavo to an unknown wallet, equivalent to approximately $12.46 million.
Such massive activities by whales often signal a lack of confidence in the short-term prospects of the asset, increasing the bearish sentiment around XRP.
Source:
Adding to the concerns, insights into Santiment’s data show that addresses holding between 100 and 100,000 XRP coins have begun to show signs of attrition.
This trend among larger addresses suggests a lack of confidence among institutional or high-net-worth investors, which could further reduce XRP’s appeal in the market.
Source: Sentiment
looking at data
Reflecting these negative sentiments, the price of XRP has seen a significant decline, trading at $0.5198 at the time of writing, representing a 16.02% decrease in value over the past month.
The decline was part of a larger bearish trend that began in May.
Further analysis of XRP’s on chain metrics revealed a decline in both network growth and velocity.
A decrease in network growth indicated a slowdown in the acquisition of new users or adoption, while lower velocity indicated a decrease in transaction frequency, potentially indicating a decrease in trading interest among investors.
Source: Sentiment
Furthermore, metrics like the MVRV ratio paint a worrying picture for XRP holders.
The declining MVRV ratio implies that a significant portion of XRP addresses were making losses at press time compared to their initial investments.
Additionally, a higher long/short gap was observed for XRP. This indicated an increase in long-term holders, which is positive as these holders do not sell due to short-term market movements.
Only time will tell whether the confidence of long-term holders will be enough to maintain XRP’s current levels.
Source: Sentiment
Realistic or not, here is the market cap of XRP in terms of BTC
On the development front, indicators like code commits and the number of active developers working on XRP-related projects have also seen a decline.
This lack of developer activity may indicate a lack of innovation or progress within the XRP ecosystem, further reducing investor confidence and market sentiment.
Source: Token Terminal
