XRP continues its struggle under a persistent downtrend, as signals from the bear market across the broader crypto market limit recovery attempts.
Despite this weakness, large wallets continue to support the altcoin, although some whale groups are reducing their exposure.
The supply of XRP changes hands
The supply movement indicates a significant redistribution of XRP among major wallet groups. Addresses holding 1–10 million XRP sold over 330 million XRP in the last four days, indicating a lack of trust from medium-sized whales. However, the selling pressure did not shift supply to exchanges or private holders.
Instead, larger wallets holding 10–100 million XRP are absorbing this supply themselves. Their combined holdings increased by 350 million XRP during the same period, which is worth over $729 million. This accumulation signals confidence from investors with more capital, who often stabilize the market as sentiment weakens.
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The macro picture for XRP remains challenging due to the decline in network activity. The number of active addresses has dropped to a three-month low of 37,088, indicating that many investors are not trading or participating in network activities. Such a decline typically suggests waning interest or uncertainty about the short-term price direction.
The decrease in participation also weakens liquidity, making it difficult for XRP to make a strong recovery, even as large holders accumulate the asset. The low volume of user transfers keeps demand low, which slows XRP's exit from the downtrend.
XRP's price is currently $2.08, and it continues its nearly month-long downtrend. The altcoin has been trading in a narrow range between $2.20 and $2.02 for several days. This highlights the difficulty in creating sentiment in the markets.
Contradictory signals from whales and weak network activity suggest that XRP may continue to consolidate in this area. If the overall market situation improves, a rise above $2.20 could allow XRP to move towards $2.36. This would be the first significant attempt at a recovery in several weeks.
If the market sentiment does not turn upward, XRP risks a new decline. If the $2.02 support level fails, the price will drop below $2.00. This negates the bullish scenario and exposes the altcoin to deeper declines.
