Both whale groups have a high appetite for risk towards XRP, possibly betting on a price increase in the coming weeks or months.
According to CryptoQuant data, the cross-border money transfer token has seen a significant decline in exchange flows. At the beginning of the year, exchange flows peaked at 2.7 billion XRP, but have since dropped significantly, with only 74 million XRP flowing to exchanges on Monday. Binance, the largest exchange by daily trading volume, experienced the largest decline, especially around February. This ongoing decline suggests that investors are optimistic about the potential of XRP and are choosing to hold the asset for a longer period, alleviating selling pressure.
However, the significant drop in the number of active addresses on the XRP ledger over 24 hours from the annual local peak of around 612,000 on March 19 to around 36,000 as of April 17 is noteworthy. This indicates that fewer unique addresses are interacting with the network (sending or receiving XRP) and reflects a decrease in network activity.
If this downward trend continues, traders may want to adapt to the declining transaction volume, which weakens bullish momentum and reduces market sentiment. Therefore, there is a need to prepare for all outcomes to avoid surprises due to sudden price movements.
XRP price is caught between a rock and a hard place.
