Recent storms have devastated the bitcoin industry; numerous alternative coins have seen notable price declines. XRP, though, appears to be defying the tempest and weathering it. Although its price has dropped, on-chain data shows interesting patterns implying a possible bright future for XRP investors.
XRP Accumulation On The Rise: Diamond Hands Or Whale Whispers?
Even with the price drop, an odd tendency has started. Data from Santiment shows that the count of investors possessing between a thousand and one million XRP tokens has actually dropped by 0.20% during the past month. This could indicate a rising number of “diamond hands,” investors who hang onto their XRP despite market turbulence because they see its long-term promise.
Still another prospect exists, though. The declining number of whales carrying between 1,000 and 1 million XRP could point to these bigger investors grouping their assets and maybe accumulating even more XRP. This consolidation can be a forerunner of the moves these whales would make in the market.
Source: Santiment
Technical Indicators Whisper Of A Price Reversal: Bullish Undercurrents?
For XRP, technical study presents a somewhat hopeful picture, albeit cautiously. Despite the price drop, the Chaikin Money Flow (CMF), a gauge of the money entering and leaving an asset, has been heading upward.
This “bullish divergence” implies that XRP may be collecting latent buying force even as the price drops. Investors expecting a future surge could be seeing the price decline as a buying chance.
Total crypto market cap currently at $2.29 trillion. Chart: TradingView
A Sea Of Uncertainty: Legal Battles And Market Headwinds
It’s important to recognize the storm clouds still hovering above XRP even if the on-chain data and technical indicators show some encouraging signals. A shadow is still thrown by the continuous legal conflict between US Securities and Exchange Commission (SEC) and XRP’s creator Ripple Labs. The result of this lawsuit can greatly affect the price of XRP as well as general market impression.
Moreover, a major consideration still is the general state of the bitcoin market. Regardless of any favorable on-chain events, if the wider market keeps declining XRP might also be dragged down.
A Coin To Watch?
Right now, XRP is a fascinating blend of vulnerability and resiliency. The rise in smaller investors and possible whale consolidation point to some underlying conviction in XRP’s future. Although the technical indicators suggest a likely price reversal, the legal struggle and more general market uncertainty produce a difficult terrain.
Featured image from VitalMTB, chart from TradingView