The asset continues to experience downward trend pressure. Negative signals from the broader cryptocurrency market are limiting recovery attempts in quotes.
Nevertheless, the altcoin is receiving significant support from key wallets, despite some investor groups exiting their positions.
Structural changes in asset distribution
On-chain data shows a significant redistribution of supply $XRP among the main groups of holders. Addresses with balances from 1 million to 10 million coins have reduced their positions by more than 330 million XRP over the last four days. This dynamic reflects skepticism among mid-tier investors.
However, the pressure from sellers has not led to a mass influx of funds to exchanges or to retail holders.
The released volume has been absorbed by larger wallets, which hold between 10 million and 100 million coins. The total accumulations of this group have increased by 350 million $XRP during the same period. In monetary terms, this amount exceeds $729 million. Such accumulation signals the confidence of institutional market participants, who often act as a stabilizing force during periods of weakened sentiment.
XRP balances on whale wallets
The fundamental picture for XRP is complicated by a drop in blockchain network activity. The number of active addresses has declined to a three-month low of 37,088 units. This indicates that a significant portion of investors is refraining from conducting transactions.
Such a decline usually indicates waning interest or uncertainty among market participants regarding the short-term direction of the price.
The decline in participation also negatively impacts the asset's liquidity. This complicates a confident recovery of quotes even against the backdrop of purchases from large holders. Due to the decrease in the number of users initiating transactions, demand remains subdued. Consequently, the pace of XRP's exit from the downward trend is slowing.
Number of active XRP addresses
Technical analysis and prospects for price movement
At the time of writing, Bitcoin and other assets are showing mixed dynamics, while XRP is trading around the mark of $2.08. The asset continues a nearly month-long downward trend. Over the past few days, the quotes have fluctuated in a narrow range between $2.20 and $2.02. This highlights the difficulties in forming momentum.
Mixed signals from large holders and weak network activity suggest that the asset may continue to consolidate in the current corridor. With improved overall market conditions, breaking through the $2.20 level will allow the price to target the mark of $2.36. Such a movement will be the first significant attempt at recovery in recent weeks.
XRP price analysis
In the absence of bullish sentiment, the asset risks facing a new wave of decline. Losing the support level of $2.02 will lead to a price drop below the psychological mark of $2.00. This scenario negates the positive forecast and exposes the altcoin to the risk of a deeper correction.
