Ripple's XRP showcased resilience with a 4% recovery on Friday after a mid-week correction. Despite a drop in active addresses and heightened profit-taking, a reset in funding rates could ignite a fresh rally. Below, we dissect XRP's on-chain metrics, key developments, and future price potential.
XRP On-Chain Metrics Reflect Mixed Investor Sentiment
Network Activity Dip
- Weekly active XRP addresses plummeted from 495K (yearly high) to 312K, signaling reduced utility-driven engagement.
- Primary activity stemmed from traders rather than long-term holders, per Santiment data.
Whale Behavior Divergence
- Small-scale whales (1M–10M XRP): Accumulated 180M XRP.
- Large-scale whales (10M–100M XRP): Offloaded 340M XRP, indicating cautious sentiment among major players.
Spot Exchange Dynamics
- Outflows surpassed inflows, suggesting bullish bias among spot investors despite lower trading volume (Coinglass).
- Realized profits: $2.2B total, peaking at $1.4B on Wednesday post-recovery—second-highest since 2021.
Key XRP Developments This Week
- RLUSD Stablecoin Approval: NYDFS greenlit Ripple’s US-launched stablecoin, set to debut on XRP Ledger and Ethereum for DeFi integration.
- XRP ETF Speculation: Crypto influencer Bitboy Crypto hinted at a potential ETF following Grayscale’s XRP Trust’s 300% NAV growth since September.
Funding Rate Reset: Catalyst for a New Rally?
- XRP funding rates normalized to 0.012% (from 0.096% on Dec 5), per Coinglass.
- With bullish market sentiment, this reset could propel XRP toward new highs.
Price Analysis
- Breakout Watch: XRP teeters near a flag channel’s upper boundary. A close above $2.58** may target **$4.78 (all-time high).
- Key Hurdle: Overcoming sell pressure at $3.00.
- Indicators: RSI and Stochastic Oscillator favor bulls.
- Risk: A daily close below $1.96 invalidates bullish momentum.
👉 Track XRP’s live price action
FAQs: Ripple and XRP Explained
What is Ripple?
A blockchain-based payments firm specializing in cross-border remittance via RippleNet, accessible to global financial institutions.
What is XRP’s Role?
XRP powers the XRPLedger, enabling instant, trustless payments for cost-efficient international transfers.
How Does XRPLedger Work?
A decentralized ledger with anti-spam protocols, maintained by the global XRP community.
Why Use XRP?
Its interledger protocol connects disparate bank ledgers, eliminating intermediaries.
Disclaimer: This content is for informational purposes only. Cryptocurrency investments carry risks; conduct independent research before decisions.
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