XRP whales add $55 million, yet the price continues to decline – What’s causing this?

• Big news for XRP enthusiasts as whales have been busy stockpiling the token in the past fortnight!
• Surprisingly, this shopping spree hasn’t given XRP’s value the boost it needed.

Despite the increased activity among XRP’s deep-pocketed enthusiasts, the digital asset’s price continues its downward spiral, much to the disappointment of many investors. 

Insights gleaned from Santiment show that whales holding substantial amounts of XRP, between 1,000,000 and 10,000,000 tokens, have collectively acquired 110 million XRP, valued at around $55 million, in the recent past. 

Source: Santiment

Despite the initial excitement post its $0.56 peak on May 6, XRP’s value has plummeted by 9% since. Currently, it stands at $0.51. 

XRP’s popularity nosedives

While XRP whales are stepping up their game, the overall interest in the altcoin seems to be waning. Data from Santiment indicates a significant drop in the daily active addresses connected to XRP. The past week alone saw a 27% decline in this metric.

Similarly, the number of new addresses engaging with XRP transactions has also taken a hit, with a 16% decrease as per a seven-day moving average.

Source: Santiment

The downturn in XRP’s attractiveness can be attributed to recent losses faced by many investors despite a bullish market trend. 

A detailed look into the daily ratio of XRP transaction volumes revealed by AMBCrypto shows a troubling trend. In the past week, for every losing transaction involving XRP, there was a meager 0.91 transactions that ended in profit. This paints a grim picture of investor sentiment around XRP in recent days.

As a result, the negative sentiment surrounding XRP has intensified, with its weighted sentiment plummeting to -0.56 currently. 

Want to know Ripple’s [XRP] Price Prediction for 2024-25? Click here!

Excitement among Futures traders

In a surprising twist, despite the lackluster performance of XRP in the market, traders in the Futures market remain optimistic.

The open interest in XRP Futures has been steadily rising since the start of May. Data from Coinglass shows a 9% increase in open interest, reaching $583 million.

Additionally, the funding rate for XRP across various exchanges remains positive, indicating a bullish sentiment. This positive funding rate signifies that more traders are expecting XRP’s price to soar in the near future.

Source: Coinglass

A positive funding rate suggests that traders are bullish on XRP’s future, anticipating a rise in its value. Exciting times ahead!