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XRP metric hits ‘newest low’ since 2020, but should that concern traders?

2min Read

The long-term outlook was bullish, as evidenced by whale activity and stable network activity.

XRP Network Health Strong and the Whale to Exchange Flow Signals Long-Term Hope
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  • Whale-to-exchange flow fell dramatically in recent months
  • Network activity was fairly good, but near-term sentiment remained weak

XRP failed to overcome the mid-range resistance level at $0.585. In fact, XRP has fallen by 5.35% in the past three days alone from $0.6 to $0.568. However, on-chain metrics offered some hope to counter the bearish short-term price action and the year-long range-bound trading.

A recent report noted that XRP whales capitalized on the price drop to add over 50 million tokens to their holdings. AMBCrypto looked closer at other metrics to see if XRP investors have more good news elsewhere or not.

Whale to exchange flow hits its lowest point since 2020

XRP Whale to Exchange Flow

Source: CryptoQuant

The Whale to Exchange Flow metric measures the volume of tokens transferred from whales to exchanges. The metric reached its lowest point since October 2020 recently.

A spike in this metric is generally seen alongside a sharp price move in either direction. With the values the lowest they have been in nearly four years, the long-term bullish case was buoyed.

XRP Santiment

Source: Santiment

The daily active addresses metric has been stable over the past two months. On certain weekends, it jumped higher but this was not a sustained move higher. Similarly, the network growth has also been steady since mid-July.

Together, it indicated a healthy and growing network, but daily activity has not stepped up meaningfully.

Also, the MVRV ratio showed that XRP was an undervalued asset as the 30-day holders were at a minor loss.

XRP’s speculative market unconvinced thus far

XRP Coinalyze

Source: Coinalyze

Throughout August, XRP bulls have fought hard to push prices beyond the $0.6 resistance zone. Their efforts were in vain and the highest point they managed was $0.634. Over the past three weeks, the Open Interest has stayed between the $430 million-$490 million range.


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This meant that each breach of $0.6 brought bullish speculators, but the demand was not strong enough to shift the resistance to support. The funding has also fallen recently to highlight reduced bullish conviction in the market.

Overall, the short-term sentiment seemed to be wavering between bullish and bearish. The long-term outlook remains bullish though, as evidenced by whale activity and stable network activity metrics. However, investors would need to be very patient.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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