After a poor performance in the first two months of the year, the price of XRP seems to have stabilized its movements, raising hopes of relief among investors. However, recent on-chain analysis suggests that the altcoin may not have reached the bottom of the real estate price.
Number of Days Spent Profitably Still Too Low — Analyst
In a recent post on social media X, on-chain analyst Joao Wedson provided information on the XRP market, saying that the cryptocurrency is still in the early stages of a price reversal, contrary to many people’s expectations. This on-chain hypothesis is based on data from the Number of Days Spent in Profit metric.
In context, this metric shows how long XRP holders have been profitable, compared to past price levels. As the name suggests, the indicator measures how many days have passed since XRP was last at a high price.
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According to Wedson, this metric has historically reached extreme levels during periods when the Number of Days At A Profit rises to high levels. Notably, the case is very different from the general context of history, as the price of XRP is still trading well below these ‘unique’ areas.
A market expert explained that this historical context suggests that the price of XRP could see a very low movement in the near term. In addition, the analyst pointed out that this is a great need for the creation of historical patterns, which also precedes the creation of previous ones.
XRP Ledger Records Expansion For Many Wallet Sizes
At the same time, the blockchain analytics company Santiment revealed that there has recently been a large amount of growth recorded in the XRP Ledger. Interestingly, much of this expansion is driven by a large increase in the number of small wallets holding XRP.
The most notable growth has come from a group of investors commonly referred to as ‘shrimps’ (those with less than 100 XRP in their wallets). According to Santiment, these wallets have added up to 5.66 million different addresses, thus demonstrating the widespread adoption of XRP by traders and everyday users.
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At the same time, wallets containing between 100 and 100,000 XRP also increased in value, reaching an estimated value of 2.01 million wallets. Because this group represents the middle level of investors who make up a significant part of the network, this may mean that the XRP market has seen the entry of more serious accumulators.
While the number of small wallets showed an impressive increase, the number of large wallets recorded only a small growth. Santiment revealed that these wallets with more than 100,000 XRP are included in about 32,054. From this, it appears that this group of investors is heavily involved in distribution or repositioning events.
With less influence of the whales driving XRP prices, it is becoming increasingly clear that the area’s lows may still be low prices. As of this writing, the price of XRP stands at around $1.44, representing a loss of 0.4% over the past day.
Image posted by DALL-E, chart from TradingView
