As the year comes to a close, December is showing few bullish signals. XRP, like other cryptocurrencies, has taken a hit recently. While a group of investors is selling off en masse, network activity is declining. How is XRP’s price responding?
XRP Whales Sell 330 Million Coins #
Large XRP investors, commonly known as whales, appear to have less confidence in the token’s price. According to data from analytics firm Santiment, traders holding 1 to 10 million XRP have sold a staggering 330 million XRP in the past few days.
What is a positive sign, however, is that larger whales have absorbed the selling pressure. Traders holding 10 to 100 million XRP have actually bought 350 million XRP in the same period. This suggests confidence in the XRP market.
Network Activity Declines #
In the recent period, activity on the XRP network has decreased. According to data from xrpscan, the number of transactions has fallen by over 15% in the past 30 days.
In the same period, the number of active users has fallen even more sharply, by over 33%. As a result, the amount of XRP used for transaction fees has decreased by approximately 28%, which directly impacts the price negatively.
Nevertheless, XRP did break its annual record for trading activity last week. Never before this year has XRP changed hands as much as last week. However, this is not directly a bullish sign, as the activity was mainly driven by many sellers in the market.
How XRP’s Price Is Responding #
While medium-sized and large XRP whales seem to be keeping the market in balance, XRP’s price is declining. In the past week, the price has fallen by nearly 8%. Compared to a month ago, XRP is worth 18% less today.
The price of XRP is currently falling sharply. In the past 24 hours alone, the price has decreased by nearly 4%. However, the price seems to be finding support at $2. At the time of writing, the price is resting exactly at this level.
