XRP continues to struggle under a persistent bearish trend, as bearish signals from the crypto market overall limit recovery attempts.
Despite this weakness, the altcoin still benefits from the support of large wallets, even as some whale groups reduce their exposure.
The supply of XRP changes hands
Whale activity shows a notable redistribution of XRP among major groups. Addresses holding between 1 million and 10 million XRP sold more than 330 million XRP in the last four days, reflecting skepticism among medium-sized whales. However, their selling pressure did not send the supply to exchanges or retail holders.
In contrast, the largest wallets holding between 10 million and 100 million XRP absorbed this supply. Their combined holdings increased by 350 million XRP in the same period, valued at over $729 million.
This accumulation indicates confidence from investors with greater capital, who often act as stabilizing forces when market sentiment weakens.
The macro perspective for XRP remains complicated due to the decrease in network activity. The number of active addresses fell to a three-month low of 37,088, showing that many investors are not making transactions or participating in the network. This decline typically indicates reduced interest or uncertainty about the short-term price direction.
The reduction in participation also affects liquidity, making it difficult for XRP to recover strongly even when large holders are accumulating. With fewer users making transactions, demand remains low, slowing down the possibility of XRP exiting its bearish trend.
XRP is trading at $2.08 at the time of writing this article, extending a bearish trend that has lasted nearly a month. For several days, the altcoin has been oscillating in the narrow range between $2.20-$2.02. This highlights the ongoing difficulty in generating momentum.
The mixed signals from the whales and the weakness of network activity suggest that XRP could continue to consolidate within this range. If overall market conditions improve, a breakout above $2.20 could allow XRP to aim for $2.36. This would mark its first significant recovery attempt in weeks.
If bullish sentiment does not appear, XRP risks another drop. If it loses the support level of $2.02, the price could fall below $2.00. This would invalidate the bullish outlook and expose the altcoin to deeper losses.
