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Ripple’s market woes: Can XRP overcome ‘zombie’ status?

2min Read

On the bright side, the weekly weighted sentiment behind XRP was positive again.

XRP Demand Slows as Transaction velocity Falters

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  • XRP saw a shift in the weighted sentiment that could help the bulls gain traction
  • The asset was undervalued but organic demand and user activity were also in decline

Ripple [XRP] was recently classified as a “zombie token” and criticized for being overvalued. The 27th of April also saw sizeable XRP outflow from exchanges, hinting at accumulation.

Yet, the price of the token continued to trend downward. Analysis showed that key on-chain metrics were in decline. Can the buyers hold off another wave of selling?

Growth metrics continued their descent

XRP Santiment

Source: Santiment

The velocity of XRP has trended downward since mid-March. This metric measures the average number of times a single token has changed wallet each day. The higher the number, the more transactions the token was involved in within a set time frame.

The decline suggested that the user activity and transactions were reducing in number. The network growth, which measures the number of new addresses being created on the network each day, has also trended downward.

Together they indicated that the demand for the token from new users has slowed, and transaction activity has also faltered alongside prices. The ratio of transaction volume in profit was also dropping after marking the local top at $0.57 on the 22nd of April.

What are the chances of a recovery?

XRP Santiment

Source: Santiment

The 30-day MVRV ratio was negative in the past two weeks. It showed that the asset was deeply undervalued in the short-term. However, the mean dollar invested age has only begun to trend higher over the past ten days.

It would need to higher for weeks or months together to give XRP bulls the strength to drive a rally past $0.7, the HTF resistance.

Read Ripple’s [XRP] Profit Calculator 2024-25

On the bright side, the weekly weighted sentiment behind XRP was positive again. Additionally, the dormant circulation was also muted in the past two weeks.

It did not see a sizeable spike, which indicated that a large wave of selling might not be upon us yet.


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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