XRP continues to face a downward trend as bearish signals from the overall crypto market have limited recovery efforts
Despite such weakness, this altcoin is still supported by large wallets, even though some whale groups have reduced their holdings
XRP supply changes hands
Whale activity indicates the distribution of XRP supply among clear major groups, with addresses holding 1 million to 10 million XRP having sold more than 330 million dollars worth of XRP in the past four days, reflecting uncertainty among medium-sized whales. However, their selling pressure did not send the supply to exchanges or retail holders.
On the other hand, large wallet groups holding 10 million to 100 million XRP absorbed this supply, increasing their total holdings by 350 million XRP during the same period, worth over 729 million USD. This accumulation reflects the confidence of major investors who often act as a market support when sentiment weakens.
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The long-term outlook for XRP remains challenged by declining network activity, with the number of active addresses dropping to 37,088, the lowest level in three months. This reflects that many investors are not transacting or engaging with the network. Typically, such a decline often indicates reduced interest or uncertainty about short-term price direction.
The reduced participation also affects liquidity, making it difficult for XRP to recover strongly, even as large holders accelerate accumulation. With fewer users transacting, demand remains muted, causing XRP to break free from the downtrend more slowly.
XRP is currently trading at 2.08 USD, extending a downtrend that has lasted nearly a month. Over the past few days, this altcoin has been swinging within a narrow range between 2.20 and 2.02 USD, reflecting a continuous struggle to build momentum.
Given the mixed signals from whale groups and persistently weak network activity, it appears that XRP may continue to oscillate within this range. If the overall market conditions improve, a breakout above 2.20 USD could set XRP on a target of 2.36 USD, which would be considered the first significant recovery attempt in several weeks.
If positive sentiment does not materialize, XRP will face the risk of another pullback. If it loses support at 2.02 USD, the price could drop below 2.00 USD, which would undermine the positive trend and put this altcoin at risk of deeper losses.
