- Ripple (XRP) investors are expressing concerns over the recent increase in dormant tokens in open interest.
- Despite a market pullback, XRP and other cryptocurrencies are entering a volatile period.
- Santiment noted a noticeable increase in dormant XRP movements amid the recovery move.
Ripple’s (XRP) recent increase in dormant tokens in open interest has sparked concern among investors. Despite the market pullback, cryptocurrencies are entering a volatile period, with XRP showing resilience. However, the increase in dormant XRP movements has raised eyebrows.
Concerning Silence in Ripple (XRP)!
The Crypto Basic published an analytical piece yesterday, utilizing the Token Age Consumed metric to identify a significant increase in the number of old tokens carried by market participants. The value rose to 130.14 billion on May 1st. This indicator tracks the amount of XRP moved by traders on a particular day and then multiplies this figure by the last time the tokens were moved. The latest data points to the highest value seen since April 13th, indicating that market participants moved a large amount of dormant XRP tokens on May 1st.
Market Reaction to Dormant XRP Tokens
Santiment confirmed that while the XRP network witnessed a similar increase of 131.41 billion on April 13th, the market responded with a significant crash. This increase coincided with a negative period for XRP, which had recorded a drop of 11.54% on April 11th and 12th. Consequently, the increase in this metric resulted in investors moving to sell or distribute their assets as a precaution against steeper declines. This led to XRP suffering a significant price drop of 12.44% on April 13th, marking its largest intraday loss since August 17, 2023.
Conclusion
However, industry experts believe that the increase in tokens moved on May 1st could lead to a different outcome. As suggested by Santiment, the recent increase in mobility could be due to investors rushing to accumulate more XRP. This could support the ongoing relief rally, which has already seen XRP reclaim $0.52.
