XRP is struggling to recover due to the impact of bearish signals from the overall cryptocurrency market and cannot escape the downward trend.
Despite this, this altcoin manages to have the support of large wallets, even though some whale groups are reducing their positions.
XRP Supply is Changing Hands
Whale movements indicate a significant XRP redistribution among major groups. Addresses holding between 1 million and 10 million XRP sold more than 330 million XRP in the last four days. This situation suggests that medium-sized whales are approaching with skepticism. However, this selling pressure did not transfer the supply to exchanges or individual investors.
Instead, large wallets holding between 10 million and 100 million XRP have accumulated this supply. The total XRP assets in these groups increased by 350 million during the same period, reaching a value of over $729 million. This accumulation shows that the confidence of large investors, who play a balancing role during periods of weak market conditions, continues.
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XRP's macro outlook is going through tough times due to a decrease in network activity. The number of active addresses has fallen to 37,088, the lowest level in the last three months. This means many investors are not trading or participating in the network. Such a decline typically indicates a decrease in interest or a prevailing indecision regarding price in the near term.
The decline in user participation directly affects liquidity as well. This makes it difficult for XRP to experience a strong recovery, even when large wallets are accumulating. When the number of users initiating transactions decreases, demand remains weak, and XRP's ability to quickly exit its downtrend is hindered.
As the article is being prepared for publication, XRP's price is at $2.08 and continues its declining trend that has been ongoing for a month. Recently, XRP has been fluctuating in a very narrow band between $2.20 and $2.02. This underscores the difficulties in gaining momentum.
Mixed signals from whales and weak activity on the network indicate that XRP will continue to experience price stagnation within this range. If the overall market sentiment turns positive, a close above $2.20 will allow XRP to target $2.36. This would also mark the first serious recovery attempt in weeks.
However, if a bullish momentum cannot be captured, there is a possibility that XRP will face a new wave of decline. If the support at $2.02 is lost, the price may drop below $2.00. This scenario completely eliminates the bullish expectation and paves the way for new losses.
