What a hike in XRP’s network activity means for investors
- Whale activity around the token remained high last week
- Market indicators also revealed that the bulls and bears have been trying to flip each other
XRP’s network activity has remained relatively stable, especially considering the present market condition. On one hand, the token’s price action hasn’t been too volatile, while on the other, investors have been actively trading the token. In fact, according to the latest datasets, 424,875,615 XRP, worth over $215 million, were recently transferred from an anonymous wallet to another anonymous wallet.
Ergo, the question – Will XRP’s high network activity have any impact on the token’s price?
?BREAKING: 424,875,615 #XRP (215,284,474.12 USD) transferred from anonymous wallet to anonymous wallet
WOW what’s happening?!#XRP ??
— XRP whale (@realXRPwhale) September 3, 2023
Realistic or not, here’s XRP market cap in BTC‘s terms
A revival in network activity
As reported previously, XRP’s network growth dropped to 2,000 over the last few days of July, which was disappointing. However, over the course of the same, the metric managed to improve and hiked above 3,000 on 31 August 2023. Not only that, but quite a few other metrics also hinted that the blockchain was seeing more activity.
The blockchain’s daily active addresses and transaction counts also registered a spike last week, reflecting greater usage. Interestingly, whale activity around XRP also remained relatively high, which was evident from its high whale transaction count.
While network activity seemed to have somewhat revived, its price action remained in the sellers’ favor. For instance, according to CoinMarketCap, XRP is down by more than 2% in the last seven days. At the time of writing, it was trading at $0.5023 with a market capitalization of over $26.2 billion, making it the fifth largest crypto.
While the token’s price remained low and network activity increased, investors might have taken the opportunity to increase their accumulation. In fact, a look at XRP’s supply distribution revealed that whales have been stockpiling the token. Santiment’s chart also revealed that addresses with more than 10,000 XRP increased their holdings. On the contrary, small-scale investors chose to behave differently as they sold their holdings.
Is XRP expecting a price hike?
Though the whales stepped up their accumulation, it might take longer for the event to reflect on the token’s chart. Its funding rates remained green too, a sign that derivatives investors have been willing to buy the token at its current price.
Additionally, XRP‘s open interest has remained low, indicating that traders are dubious about the asset’s price movement.
Here, it’s worth pointing out that Coinglass’ data revealed that XRP had a high long/short ratio. Generally, a high ratio suggests bullish market sentiment, while a low ratio suggests bearish market sentiment.
Read XRP’s Price Prediction 2023-24
Finally, XRP’s MACD revealed that the bulls and the bears are in a battle to flip each other. Its Relative Strength Index (RSI) was also resting low – A bearish signal.
On the flip side, a bullish indicator was the Money Flow Index (MFI) as it registered an uptick and was heading towards the neutral mark of 50.