📊 Rising Exchange Balances Raise Doubts About XRP Recovery
Despite continuous derivatives market activity, XRP gives negative signs on short time periods.
As exchange balances rise to 3.41 billion from 3.26 billion XRP in two weeks, investors may prepare to cut exposure.
XRP Ledger network activity is modest, with new addresses below 5,000.
Bitcoin (BTC) fell below $108,000 on Friday, lowering market sentiment and risking Ripple (XRP). For now, XRP is selling at $2.22, down over 1% despite ongoing demand in the coin, especially in derivatives.
From June lows of $3.54 billion, XRP futures OI rose 23.2% to $4.61 billion. OI represents all unsettled futures and options contracts.
Exchanges now hold 3.41 billion XRP tokens, up 4.4% from 3.23 billion on June 25. According to Glassnode statistics, investors are likely to sell when they move assets to exchanges, which might hurt XRP.
Since May 22, the XRP Ledger (XRPL) has limited new addresses to 5,000. The data below shows 4,389 newly generated addresses as of Thursday.
Network activity, including current addresses and new addresses, typically affects XRP's price.
During the extraordinary climb in the fourth quarter of 2024 and the first quarter of this year, XRPL addresses gradually grew to 31,840 by December 2 and remained above the present level until mid-March. little network expansion indicates little XRP demand, which lowers the price. Market mood and transaction volume may also be influenced.
Using Ripple Payments and its RLUSD stablecoin infrastructure, Ripple is constructing a regulated bridge between the cryptocurrency sector and conventional banking, which might enhance XRP demand.
The 50-period EMA at $2.20 should absorb selling pressure. Once the price breaks this level, the 200-period EMA at $219 and the 100-period EMA at $2.18 may provide short-term support. $2.15, tested Wednesday, and $2.07, last tested June 27, are further potential support levels traders may consider.
