Is XRP’s price bottom in sight – Here’s what on-chain data says

Key Takeaways 

What does the surge in XRP’s large holder base reveal about investor behavior?

It highlights strong accumulation from long-term investors, showing growing confidence and conviction despite ongoing price pressure.

How do sentiment recovery and Open Interest reset shape XRP’s short-term outlook?

They signal a cleaner, healthier market environment that could support renewed momentum if buying strength continues to build.

Ripple’s [XRP] large holder count has reached a record 317.5K wallets holding at least 10K tokens, highlighting a deepening wave of long-term conviction among investors. 

This growth marks the highest level in the asset’s history, showing steady accumulation despite broader market uncertainty. 

The sustained rise in mid-to-large wallets suggests investors are prioritizing long-term positioning over short-term volatility. 

Moreover, such accumulation patterns often precede structural reversals, as whales tend to buy heavily during undervalued phases. 

This steady increase in large holders underscores the growing belief that XRP’s market reset has strengthened its long-term foundation.

Decoding XRP’s descending channel structure

XRP continues to trade within a descending channel between $3.11 and $2.20, showing a consistent pattern of lower highs and lower lows. 

At press time, the price hovered near the channel’s lower boundary, a zone where buyers have historically defended strongly. 

This region has acted as a recurring support level, allowing temporary rebounds whenever selling pressure fades. 

The next significant resistance lies near $2.62, and reclaiming this level would confirm renewed momentum from buyers. 

However, failure to defend $2.20 could trigger a deeper test of psychological supports, undermining the positive accumulation trend forming across the network.

 Cautious optimism returns!

After several weeks of negative readings, XRP’s Weighted Sentiment has flipped to +0.51, as of writing, signaling early signs of optimism among market participants. 

The uptick suggests traders are gradually regaining confidence following the extended correction period. 

This improving sentiment aligns with the growing large-holder base, reflecting a slow but steady recovery in market conviction. 

Historically, similar sentiment reversals have coincided with price stabilization and eventual recoveries. 

However, the sustainability of this optimism depends on whether buying activity can extend beyond whales to attract retail participation as well.

Open Interest reset wipes out speculation

Between the 6th and the 18th of October, XRP’s Open Interest collapsed from $2.9 billion to $1 billion, marking a $1.9 billion drop across exchanges. 

This decline represents a 65.5% reduction, effectively flushing out excessive leverage from the market. 

Such drastic unwinding often follows a long-squeeze cascade, where forced liquidations purge speculative positions. 

While painful in the short term, this reset can establish a cleaner foundation for renewed capital inflows. 

If Open Interest begins to rise alongside stable prices, it would signal fresh investor confidence and potentially mark the early stages of a broader recovery phase.

Can on-chain conviction translate into sustained recovery for XRP?

The convergence of strong whale accumulation, improving sentiment, and a complete leverage reset paints a cautiously bullish picture for XRP. 

The token’s next move depends on whether these on-chain signals translate into renewed buying strength capable of breaking the descending pattern. 

If accumulation continues while Open Interest stabilizes, XRP could soon exit its downtrend and build momentum for a sustainable recovery.