|

XRP consolidates as whales sell and on-chain activity declines

  • XRP extends sideways action between support at $2.15 and resistance at $2.30.
  • XRP Ledger’s daily active addresses drop to 19,200 as investors retreat to the sidelines.
  • Selling pressure deepens as whales continue offloading tokens, weakening XRP’s recovery potential.

Ripple (XRP) is trading in a narrow range, with support at $2.15 and resistance at $2.30 at the time of writing on Friday. For four consecutive days, the cross-border remittance token has remained in this narrow range, suggesting a battle for control between the bulls and the bears.

Meanwhile, low retail demand, as highlighted in this report, continues to suppress XRP’s recovery potential. A weak derivatives market alongside macroeconomic uncertainty ahead of the Federal Reserve’s (Fed) December monetary policy meeting is building risk-off sentiment, which may continue to cap rebounds.

XRP recovery stalls amid low on-chain activity 

On-chain activity on the XRP Ledger (XRPL) has remained significantly suppressed over the last few months. According to Santiment data, since June, the number of daily active addresses on the network has not exceeded 100,000. 

The Daily Active Addresses chart below shows that approximately 19,200 addresses transacted on the XRPL on Thursday, compared to 581,000 in mid-June. Low on-chain activity negatively affects adoption, demand, and user engagement, making it difficult for bulls to sustain price increases.

XRP Daily Active Addresses | Source: Santiment 

At the same time, large-volume investors, also known as whales, continue to offload XRP, further intensifying selling pressure. The Supply Distribution metric below shows that the cohort of investors holding between 100,000 and 1 million tokens (blue line) currently accounts for 9.81% of the total supply, down from 10.06% on November 1 and 10.21% on September 4.

Subsequently, addresses holding between 1 million and 10 million tokens (red line) account for 6.75% of XRP’s total supply, down from 9.76% on November 1 and 10.75% on September 4.

XRP Supply Distribution metric | Source: Santiment

The sharp downtrend in whale holdings backs the sticky risk-off sentiment. If it persists, recovery in the XRP price could be a pipe dream while increasing the odds of the downtrend extending significantly below $2.00.

Technical outlook: XRP consolidates amid sideways trading

XRP is trading at around $2,19 at the time of writing on Friday while holding beneath the falling 50-day Exponential Moving Average (EMA) at $2.36, the 100-EMA and 200-day EMAs at $2.51, all of which cap the immediate upside. The Moving Average Convergence Divergence (MACD) has turned higher above the signal line on the daily chart, with a widening positive histogram suggesting momentum is improving and a recovery attempt could extend if resistance at $2.36 gives way.

XRP Supply Distribution metric | Source: Santiment

The descending trend line from $3.66, which marked the record high on July 18, continues to limit advances, with resistance seen at $2.66. Furthermore, the Average Directional Index (ADA) has eased to 23.96, reinforcing a waning trend and a consolidative tone. A break above the resistance cluster at the 100- and 200-day EMAs ($2.51), would strengthen the upside case, while failure ahead of the 50-day EMA at $2.36 would keep sellers in control.

Open Interest, funding rate FAQs

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

(The technical analysis of this story was written with the help of an AI tool)

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

More from John Isige
Share:

Editor's Picks

XRP grinds lower despite Ripple securing final OCC approval for National Trust Bank

Ripple is rising above $1.30 on Tuesday, while still largely constrained by technical hurdles. The token is down roughly 16% from its October high of $1.56, and 21% from the September peak of $1.66, reflecting weeks of persistent headwinds and risk-off sentiment.

Crypto Today: Bitcoin, Ethereum and XRP on edge as sell-side pressure intensifies

Cryptocurrency prices are broadly correcting on Tuesday, led by Bitcoin edging lower below the pivotal $80,000 level. Ethereum mirrors Bitcoin’s neutral-to-bearish outlook, while Ripple hovers around $1.30.

Top Altcoins Price Forecast: Ripple, Cardano, Solana extend losses amid persistent selling pressure

Top altcoins, including Ripple, Cardano, and Solana, face intense selling pressure, extending losses from the previous week. XRP tests the $1.2941 support floor, while ADA risks deeper losses and SOL struggles near the $100 mark.

Bitcoin consolidates below $80,000 as Middle East tensions, tech earnings loom

Bitcoin trades below $80,000 on Tuesday, failing to close above the 50-day EMA near $80,765 the previous day. Spot BTC ETFs recorded modest inflows of $110.34 million on Monday, while Strategy made no BTC purchases last week and Strive added 6,182 BTC.

Bitcoin extends pullback as ETF inflows clash with risk-off sentiment

Bitcoin remains under pressure, trading around $81,800 on Friday, recording modest losses so far this week. Despite a mild pullback, institutional demand showed signs of a comeback with spot Exchange Traded Funds recording $442.67 million in net inflows through Thursday.