2 Major Red Flags for Ripple’s Price as XRP Dumps 4.5% Daily: Details

The broader market weakness, perhaps prompted by the latest FOMC meeting or fears about Strategy having to sell more BTC to fund dividend payments, has not spared Ripple’s cross-border token.

The asset is down by well over 4% in the past day and a whopping 18% on a monthly scale. It was rejected at $1.30 earlier this week and now fights to stay above $1.10. However, there are some warning signs about a more profound breakdown.

Warning Shots

Ripple whales have been a crucial part of the broader project investment ecosystem, as recent reports indicate they control nearly 70% of the entire supply. Additional data from CryptoQuant doubled down on their bullishness, as the analysts noted that they had refused to sell despite XRP’s price drop.

However, Ali Martinez shared a more concerning statistic earlier today. Citing data from Santiment, he said XRP whales have distributed (likely sold) more than 30 million tokens in the past five days alone, as their total holdings have declined toward 3.78B.

Similar moves by the largest cohort of investors not only increase the immediate selling pressure, but their example could also be followed by smaller market participants, who tend to mimic their actions.

The second major warning sign comes from the declining network usage. More data from the same two sources suggested that the XRP network activity has plummeted by nearly 50% in the past two weeks. Active addresses have fallen from around 50,000 to 25,000. The graph below illustrates this substantial decline, as there were days with even fewer than 25,000 active wallets.

The Silver Lining

The only positive constant for Ripple’s native token remains the institutional appetite for the exchange-traded funds tracking its performance. Even during weeks where the BTC and ETH ETFs recorded massive net outflows, the spot XRP counterparts kept defying the bearish trend, staying in the green.

The past four trading days were no exception. SoSoValue data shows that the net inflows stood at $2.82 million on Monday, $5.30 million on Tuesday, and $2.55 million on Thursday, with Wednesday seeing no reportable action. The total cumulative net inflows have risen slightly again, to a fresh all-time high of $1.45 billion.

Ripple (XRP) ETF Flows. Source: SoSoValue
Ripple (XRP) ETF Flows. Source: SoSoValue

 

The post 2 Major Red Flags for Ripple’s Price as XRP Dumps 4.5% Daily: Details appeared first on CryptoPotato.

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