Ripple: Can the current trend for XRP take off towards $0.45?

Lavina Daryanani
Source: CoinDesk

Mid-day on Thursday, the state of the crypto market deteriorated in a matter of minutes. The dip was instigated by Ethereum’s fall below $1.9k. Other top alts, as a result, ended up following the same path as the leader.

Ripple’s native XRP token was no exception to the broader trend. Its losses over the past 24-hours had summed up to 4%, and at press time, the asset was seen trading at $0.388.

Spoilsport factors

During bearish market phases, the state of the on-chain metrics is usually assessed to gauge the overall health of a particular network. Now, as far as Ripple is concerned, the number of active addresses has been depleting since the end of January, and the same is not a good sign. As illustrated below, the reading of the same has shriveled from 243k to 49k in the said period.

Source: Messari

In fact, XRP’s transaction count to have noted the same misery. From February’s highs of 2 million, the same has dumped by half to 1 million now, indicating the fading user interest with respect to XRP and the Ripple network.

Source: Messari

However, as a sigh of relief, it is interesting to note that XRP whales HODLing between 1 million and 10 million XRP have collectively been accumulating XRP tokens. In fact, they are the most active tier of non-exchange holders, and currently hold 6.12% of all XRP.

As highlighted in the chart, this cohort currently possesses their highest percentage of the asset’s supply in 2 months, after noting a 2.4% uptick in just the past 11 days.

Source: Santiment

So, going forward too, if the same trend continues, then XRP should hopefully be able to put a cap on its losses and if the trend gets even stronger, then it might even propel XRP to re-inch towards $0.45.

But for now, keeping the deteriorating state of other metrics and the broader market state in mind, it doesn’t seem like XRP is in a position to take off at the moment.