Flat 50% off on trading fees for the first 1500 early birds: Click here to join now & claim your reward! 
Can Whales Influence XRP’s Range-Bound Price Action?
- Research reveals a surge in whale activity based on XRP supply distribution
- Social metrics and network activity indicate that bulls may struggle to make a comeback
XRP, the cryptocurrency created by Ripple, has been trading within a narrow range for the past ten months, remaining in the lower half of the range since mid-April. This lackluster performance is reflected in the uninspiring Open Interest. Despite this, whales have been steadily accumulating the token.
A recent report by AMBCrypto delved into the possibility of a shift towards a bullish trend. The decrease in XRP supply on exchanges suggests accumulation, although it may not be sufficient for a significant recovery.
Declining Social Media Engagement
Image Source: Santiment
The sentiment surrounding XRP over a 3-day period has mostly been negative in the past month. Although there was a brief positive spike in April, overall sentiment has been bearish since then.
Social volume has remained relatively stable since early April, albeit lower than the levels seen in March. This decline can be attributed to reduced enthusiasm in the altcoin market and subdued price movements.
An analysis of XRP supply distribution reveals that most XRP holders across all brackets are selling, except for the largest holders with 10 million or more tokens. Conversely, there has been an increase in holders with 1 XRP or less.
While this aligns with reports of whale accumulation and reduced XRP supply on exchanges, the lack of conviction among smaller wallet holders in recent months raises some concerns about the token’s future.
Concerns Over Coin Age Trends
Despite a consistent level of development activity, XRP’s activity count remains significantly lower than other cryptocurrencies like Ethereum and Cardano. At press time, XRP had an activity count of 2.5, compared to 48.7 for Ethereum and 62.9 for Cardano.
The number of daily active addresses for XRP has been on a downward trend, with sporadic increases in activity.
Let’s take a look at XRP’s market cap in Bitcoin terms
The average coin age of XRP had been steadily increasing over the past six weeks but recently saw a sharp decline, indicating a significant movement of previously inactive tokens.
Overall, XRP bulls face a tough challenge ahead. Similar to previous cycles, the token may remain subdued for most of the market rally before experiencing a surge in the final months, potentially resulting in substantial gains.
