Recent on-chain analysis indicates that XRP might not have reached its price bottom yet, despite a period of relative stability following a disappointing start to the year. Investors had hoped for a rebound, but insights from analyst Joao Wedson suggest that the altcoin is still in a precarious position.
Wedson recently shared his findings on the social media platform X, highlighting the “Number of Days Spent At A Profit” metric, which tracks how long current holders have been in profit compared to past price points. This indicator is crucial, as it historically signals potential price reversals when it reaches extreme levels. However, current data shows that XRP remains significantly below these historical benchmarks, indicating the possibility of more downward movement in the near future.
As the cryptocurrency market grapples with volatility, this analysis serves as a reminder of the complexities involved in predicting price trends. The broader crypto landscape has been marked by fluctuating investor sentiment, and XRP’s situation appears to mirror this uncertainty. The analyst emphasized that for XRP to form a solid bottom, it must first align with historical patterns that have preceded previous price recoveries.
In addition to price concerns, blockchain analytics firm Santiment reported notable growth within the XRP Ledger, particularly among smaller wallet holders. The number of wallets holding less than 100 XRP—often referred to as “shrimp” wallets—has surged to approximately 5.66 million. This growth reflects an increasing adoption of XRP by retail investors. Moreover, wallets containing between 100 and 100,000 XRP have also seen expansion, reaching around 2.01 million. This influx of mid-tier investors suggests a potential shift in market dynamics.
Conversely, large-holder wallets (those with over 100,000 XRP) have seen minimal growth, indicating that these wealthy investors may be more focused on distribution rather than accumulation. This lack of influence from “whales” further supports the notion that XRP’s local bottom could still be lower than current levels.
As of now, XRP’s price hovers around $1.44, reflecting a slight decline of 0.4% over the past day. With market conditions remaining uncertain, both investors and analysts will be keeping a close eye on these trends to gauge the future trajectory of XRP.