- The flow of whales to exchanges has dropped dramatically in recent months
- Network activity was quite good, but short-term sentiment remained weak
XRP failed to overcome the intermediate resistance level at $0.585. In fact, XRP has fallen by 5.35% in the last three days alone, from $0.6 to $0.568. However, on-chain metrics have offered some hope to counter the short-term bearish price action and trade within a one-year range.
A recent report noted that XRP whales took advantage of the price drop to add over 50 million tokens to their holdings. AMBCrypto took a closer look at other indicators to see if XRP investors have more good news elsewhere or not.
Whale exchange flow hits lowest point since 2020
Source: CryptoQuant
The Whale to Exchange Flow metric measures the volume of tokens transferred from whales to exchanges. The metric recently hit its lowest point since October 2020.
An increase in this measure is usually observed in conjunction with a strong price movement in one direction or the other. With values at their lowest level in almost four years, the long-term bullish scenario has been reinforced.
Source: Santiment
The number of daily active addresses has remained stable over the past two months. On some weekends, it increased, but it was not a sustained increase. Similarly, network growth has also been stable since mid-July.
Overall, this indicates a healthy and growing network, but daily activity has not increased significantly.
Additionally, the MVRV ratio showed that XRP was an undervalued asset as 30-day holders suffered a minor loss.
XRP Speculative Market Not Convinced Yet
Source: Coinalyze
Throughout August, XRP bulls have been struggling to push prices beyond the $0.6 resistance zone. Their efforts were in vain, and the highest point they managed to reach was $0.634. Over the past three weeks, open interest has remained between $430 million and $490 million.
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This means that every break of $0.6 has attracted bulls, but demand has not been strong enough to shift resistance to support. Funding has also fallen recently, highlighting the market’s reduced bullish conviction.
Overall, short-term sentiment seems to be oscillating between bullish and bearish. The long-term outlook, however, remains bullish, as evidenced by whale activity and stable network activity indicators. However, investors will need to be very patient.
