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XRP Holders Dump Tokens: Will Price Drop Below $0.50 Now?
- XRP price may drop to $0.48 after a lot of holders sold the token.
- Volatility increased, network activity collapsed, indicating such a recovery
Addresses from 100,000 to 1 million XRP have destroyed the number of tokens held in their wallets, AMBCrypto confirmed after analyzing Santiment data.
As of this writing, the data is on-chain showed that the 100,000 to 1 million group now held 11.01% of the total circulating XRP supply. The decrease in address balance also reveals that the 10,000 to 100,000 group represents 11.27%.
XRP begins the downward path
Last week, the price of XRP managed to move from $0.48 to $0.52 on a few days. However, the token has erased some of them earnings.
As balances decline, the token’s price could slip below $0.50. At the time of writing, the value of the token was $0.51, indicating that the effect was already underway.
Source: Santimento
But this parameter alone cannot determine whether XRP will continue to fall. Therefore, AMBCrypto has taken the Open Interest (OI) valuation into consideration.
OI refers to the value of all open positions in a contract. An increase in OI implies that more liquidity is entering the market. When this happens, it means buyers are aggressive.
When the OI decreases, means an increase in the number of net closed positions. If this is the case, it means that sellers are aggressive.
At the time of writing, XRP Open Interest stood at $577.63 million. This is a sharp decrease in the last 24 hours. If this number continues to drop, the price of the token could evade another pump.
Source: Coinglass
The market is no longer volatile
Additionally, bulls targeting higher prices may need to slow down their optimism. Apparently, the value of XRP may drop to the $0.50 support.
However, if the selling pressure intensifies, there is a possibility that the native XRP Ledger token could fall to $0.48. Beyond that, AMBCrypto looked at one-day volatility.
Volatility shows how rapid and significant the price is fluctuations occur frequently. Increasing volatility, supported by increased buying pressure, could lead to a surge in prices.
As of this writing, XRP’s daily volatility has increased after the recent decline. However, this peak does not appear to favor a recovery. Instead, the indicator could strengthen a downtrend.
Plus, on-chain data showed that on May 18 the addresses active 24 hours a day rose to 35,000. But as of this writing, the value had dropped to 33,100.
Source: Santimento
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Active addresses shows the number of unique addresses that participated in a transfer for a given resource on a given day. Historically, an increase in active addresses drives an increase in the price of XRP.
Therefore, the recent decline suggests that XRP may not make a move that will push its price higher. In the short term, XRP seems almost destined for a significant decline.