Ripple’s XRP was in the headlines for the past few weeks for unfortunate reasons ranging from scathing analyst reviews and feedback to regulatory battles. The XRP tokens were not having the best of the times.
To add more to the damage, whales also started moving away from the Ripple XRP market, raising pertinent questions about the crypto’s future trajectory.
Recent data about the blockchain network highlighted a considerable transfer of around 24,118,600 XRP tokens, amounting to approximately $12.46 million. The transaction was made to an unknown digital wallet from Bitvavo. Such a large-scale movement by whales often indicated their lack of trust and confidence in the asset’s short-term prospects, further adding to the crypto’s bearish sentiment.
In addition to the existing concerns, data from the Santiment revealed that the wallet addresses that held XRP tokens ranging from 10 to 100,000 coins started to show signs of disinterest.
Considering these pessimistic views and negative sentiments, the XRP price has substantially declined. According to our XRP price prediction, XRP is currently trading at $0.50, with a value falling by almost 4.64% over the last week. This downtrend was a part of the larger bearish market that began in May.
Further evaluation of the on-chain metrics of XRP revealed a fall in velocity and network growth. A reduced velocity indicated a fall in the transaction frequency. At the same time, a decrease in the network growth suggested a potential slowdown in the adoption of XRP or acquisition of new users, indicating a loss of interest among traders and investors.
Moreover, other metrics like the MVRV ratio have painted a concerning scenario for all XRP token holders. The falling MVRV ratio implies a considerable portion of the token addresses were at a loss compared to the initial investment.
In addition, a high short/long difference was observed in XRP token holders. This suggested a rise in the long-term XRP holders, painting a favorable scenario as they do not sell XRP due to short-term movements in the market.
Time will decide whether the confidence and faith of these long-term XRP holders will ultimately be enough to retain the current levels.
In terms of development, indicators such as the number of frequent and active developers and code commits have also witnessed a downturn. This decline suggests a lack of progress or innovation within the ecosystem, further eroding market sentiment and investor confidence.
Source: https://www.cryptonewsz.com/xrp-loses-buoyancy-faster-as-whales-abandon/