After a poor performance in the first two months of the year, the XRP price seems to have stabilized its movement, raising hopes for relief among investors. However, the latest on-chain analysis suggests that the altcoin may not have reached its true local price floor yet.
Number of days with profit still quite low – Analyst
In a recent post on social media platform X, on-chain analyst Joao Wedson says offered insights into the XRP market, saying that the cryptocurrency is not yet entering the first phase of a price recovery, contrary to popular expectations. This on-chain hypothesis is based on data from the Number of Days Spent on Profit statistic.
For context, this metric represents how long current XRP holders have made profits, compared to past price levels. As the name suggests, the indicator measures how many days have passed since XRP was last at a higher price.
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According to Wedson, this metric has historically reached extreme levels during periods when the number of winning days rose to high levels. Notably, the case is very different from the usual historical context, as the XRP price is still trading significantly below these ‘signature’ zones.
The market expert explained that this historical context indicates that the XRP price could see more downward moves in the short to medium term. Moreover, the analyst pointed out that this is the main condition for the formation of historical patterns, which in turn precede the formation of previous bottoms.
XRP Ledger Records Expansion Across Multiple Wallet Sizes
At the same time, blockchain analytics firm Santiment revealed that a significant amount of growth has recently been recorded in the XRP Ledger. Interestingly, much of this expansion is driven by a significant increase in the number of small wallets holding XRP.
The most notable growth came from a group of investors commonly referred to as “shrimps” (with less than 100 XRP in their wallets). According to Santiment, these shrimp wallets have yielded a total of approximately 5.66 million separate addresses, reflecting the widespread adoption of XRP by retailers and regular users.
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At the same time, wallets holding between 100 and 100,000 XRP have also expanded in number, reaching an estimated 2.01 million wallets. Since this group represents mid-market investors who make up a significant portion of the network, it could mean that the XRP market has seen an influx of more serious accumulators.
While the number of small wallets has shown impressive growth, the number of wallets with large holders has only shown minuscule growth in relative terms. Santiment revealed that these wallets holding more than 100,000 XRP have a limit of approximately 32,054. This shows that this investor group has mainly been involved in distributions or repositioning events.
With little influence from the whales setting XRP prices, it becomes clearer that there may still be lower prices at a local bottom. At the time of writing, the XRP price stands at around $1.44, reflecting a loss of 0.4% in the past day.
Featured image of DALL-E, chart from TradingView