Investors Dumping XRP, Will Prices Plummet?

XRP's price could fall to $0.48 after numerous holders sold their tokens. Volatility has surged while network activity has declined, suggesting a challenging recovery ahead.

Wallets holding between 100,000 and 1 million XRP have distributed their tokens into smaller amounts, based on data analysis from Santiment.

As of this writing, on-chain data reveals that wallets within the 100,000 to 1 million range now constitute 11.01% of the total circulating supply of XRP. Additionally, a decrease in wallet balances indicates that those holding between 10,000 and 100,000 XRP now make up 11.27%.

XRP’s Decline Begins

Last week, XRP’s price managed to climb from $0.48 to $0.52 within a few days. However, some of those gains have since been erased. With the reduction in wallet balances, the token’s price could potentially dip below $0.50. At the time of writing, XRP is valued at $0.51, suggesting the impact has already started.



Source: Santiment

However, this metric alone cannot determine whether XRP will continue to fall. Therefore, the assessment of Open Interest (OI) was considered. OI reflects the value of all open positions in contracts. An increase in OI implies that more liquidity is entering the market, indicating aggressive buying.

Conversely, a decrease in OI suggests that the number of closed net positions is rising, signifying aggressive selling. At the time of writing, XRP’s Open Interest stands at $577.63 million, marking a net decline over the past 24 hours. If this trend continues, the token’s price might avoid another surge.

Source: Coinglass

The Market Stabilizes

Moreover, bullish speculators aiming for price increases might need to temper their optimism. On the surface, XRP’s value could drop to the support level of $0.50. However, if selling pressure intensifies, the native token of the XRP Ledger could potentially fall back to $0.48. Additionally, the level of daily volatility was also considered. Volatility indicates how frequently and significantly price changes occur.