XRP’s mixed signals: Wallets hit 5M despite bearish signs

• XRP Ledger saw a massive increase in wallet adoption, with over 5 million active accounts
• Market sentiment for XRP remains pessimistic

XRP has seen a remarkable increase in the number of non-zero balance wallets, indicating a surge in adoption and investor interest. Taking to X (formerly Twitter), Crypto Town Hall highlighted this significant development.

NUMBER OF NON-ZERO BALANCE XRP WALLETS SURGE TO NEW ALL-TIME HIGHS

The number of wallets with non-zero XRP balances doubled since February 2021, reaching a record 5.02 million.

The increase showcases growing interest and expansion in XRP over its 10+ years of trading.

Source:… pic.twitter.com/GNuUWcvvp7

— Crypto Town Hall (@Crypto_TownHall) January 28, 2024

XRPL records new highs

According to data shared by Santiment, the number of XRP Ledger (XRPL) wallets holding more than zero XRP coins hit an all-time high in January 2024. This peak represents a significant milestone in the ledger’s history, which spans over a decade of public trading. At press time, the XRPL boasted 5.08 million wallets. 

Since the beginning of 2020, there has been a remarkable increase of 170% in the number of XRP wallet holders. The total has risen remarkably from around 2.5 million in early 2021 to over 5 million in 2024.

Interestingly, this growth trajectory didn’t start in 2021. Santiment data also reveals that since 29 May 2019, the number of wallets containing more than zero XRP has grown threefold. This indicates a more than 300% hike in the number of individuals owning XRP over the past five years.

Additionally, XRPscan reported that transaction activity on the XRP Ledger has also touched new heights. Inter-wallet transactions peaked at nearly 6 million earlier this month, setting a new record for the platform.

XRP’s market performance

Source: TradingView

Despite the milestones, the market trend for XRP remains predominantly bearish. At the time of writing, XRP exchanged hands at $0.5268, which represented a notable decline from its peak price of around $0.9 in July. 

The trading volume remained notably low, suggesting reduced investor interest or confidence. The Relative Strength Index (RSI) registered a reading of 37.29, a minor uptick from the previous oversold value of 29.99 on 25 January. 

Additionally, the On-Balance Volume (OBV) recorded a value of 28.5 billion, providing insights into limited positive volume momentum. The Moving Average Convergence Divergence (MACD) values further corroborated the bearish sentiment.

As the analysis concluded, the signal line stood at -0.018, the histogram at -0.0005, and the MACD line at -0.019. All of these indicated a negative trend for now. Investors should closely monitor the indicators to look for potential signs of a reversal or recovery in the indicators.