XRP Holders In Panic Selling Frenzy? Sub-$0.50 Looms
May 20 2024 - 3:14AM
NEWSBTC
The price of XRP, the native token of Ripple, seems to be teetering
on the edge of a short-term decline, according to an analysis of
on-chain data by NewsBTC. While bulls might want to hold their
horses, the report paints a picture of a market potentially
succumbing to selling pressure in the immediate future. RR Whales
Shedding Weight: A Bearish Signal? The report raises a red flag
with the movement of XRP in large wallets. Investors holding
between 100,000 and 1 million XRP have been noticeably reducing
their holdings. This suggests a potential increase in sell
pressure, as these “whales” unload their tokens onto the market.
The combined holdings of this group now represent a smaller
percentage of the total circulating supply, which could lead to a
temporary glut of XRP and a corresponding price drop. The behavior
of these large XRP holders could indicate a shift in market
sentiment, prompting concerns about the future stability of XRP
prices. As these whales liquidate their positions, the market could
face increased volatility, with prices reacting sharply to the
influx of sell orders. Additionally, the reduction in whale
holdings might signal a lack of confidence in XRP’s short-term
prospects, potentially discouraging smaller investors from
maintaining or increasing their positions. Open Interest and Active
Addresses: Not Shining a Bullish Light Further dampening the
enthusiasm for XRP is the Open Interest (OI) metric. OI refers to
the total value of all open positions in XRP futures contracts. A
decrease in OI, as observed recently, signifies a decline in market
activity and potentially more sellers closing their positions. CC
This trend aligns with the dwindling number of active addresses on
the XRP network. Active addresses represent the unique number of
wallets involved in XRP transfers within a specific timeframe. A
recent drop in active addresses suggests a decrease in overall
market participation, which can often precede a price slump. RR
Volatility: A Double-Edged Sword A silver lining some might see is
the recent spike in XRP’s one-day volatility. Volatility can be a
double-edged sword, however. While it can indicate heightened
market activity and potentially lead to price surges, the current
situation seems to be leaning towards the opposite. The rise in
volatility, coupled with the selling pressure and declining
participation, might simply reinforce a downtrend rather than spark
a price increase.
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