XRP Price May Drop Further, Analysts Warn of Ongoing Struggles
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James Mitchell combines investment banking with cryptocurrency journalism to analyze the institutional adoption of digital assets. Specializing in ETFs and regulation, he translates complex developments…
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Following a challenging start to the year, XRP’s recent price behavior has sparked cautious optimism among investors. Despite this, recent on-chain analysis indicates that the cryptocurrency may not have reached its true price bottom yet.
On the social media platform X, on-chain expert Joao Wedson shared his assessment of the current market conditions surrounding XRP. He stated that despite some hopeful signs, the cryptocurrency has not yet seen the initial phases of a price rebound, which diverges from what many investors might anticipate. The basis of his insights lies in the ‘Number of Days Spent At A Profit’ metric.
This specific metric tracks how long current XRP holders have maintained profitability in relation to past price points, essentially measuring the duration since XRP last saw a higher value.
Wedson underscored that historically, this metric reaches critical levels during times when the days spent in profit are elevated. Currently, however, the situation for XRP differs markedly from prior trends, as its price remains well below these significant thresholds.
The analyst suggested that given this historical framework, the XRP price might experience further downward pressure in the short to medium term. He elaborated that this condition must be satisfied before any recognizable price patterns can emerge, which have precedented previous price bottoms.
Meanwhile, blockchain analysis from Santiment highlights notable activity within the XRP Ledger, showcasing substantial growth among various wallet sizes. A significant portion of this increase stems from a rise in smaller wallets, often referred to as ‘shrimps,’ which are defined as wallets holding less than 100 XRP.
According to their findings, there are now approximately 5.66 million shrimp wallets, indicating a surge in XRP adoption among everyday users and smaller retail investors. Additionally, mid-tier wallets containing between 100 and 100,000 XRP have also increased in number, totaling around 2.01 million. This demographic is crucial as it represents a solid base of more committed investors.
In contrast, the growth in large-holder wallets—those containing over 100,000 XRP—has been minimal, with the number capped at approximately 32,054. This suggests that larger investors have predominantly been engaged in redistributing their holdings rather than increasing their positions.
As smaller wallets continue to expand, it becomes clearer that the influence of larger investors on XRP’s price dynamics remains limited. Consequently, the likelihood of a local price bottom still being further away becomes more evident. Presently, XRP’s price stands at about $1.44, reflecting a slight decrease of 0.4% over the last 24 hours.
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