With on-chain data showing over 70% of all capital kept in XRP XRP/USD has joined the network within the previous six months amid increased pricing, XRP has become a standout narrative in terms of capital movements. Comprising more than 70% of XRP’s market cap, this huge flood of fresh money marks hitherto unheard-of capital deployment close to recent price highs between $2-2.65.
Given that these inflows came during XRP’s surge to multi-year highs and then spell of correction, their timing is especially remarkable. This concentration of recent investment puts a precarious situation in place since rather small price declines could cause a lot of holders to lose unrealized value. Currently trading at $2.29, XRP finds itself fluctuating between resistance at $2.65 and important support at $2.00.
For the basic health of XRP, network activity data shows a conflicting picture. Although the large financial flows show great investor interest, since March’s high, the number of active addresses has dropped by almost 90%. This substantial drop in on-chain activity points to real network utilization contracting greatly, maybe reflecting speculative rather than utility-driven demand in spite of the money flood.
