XRP faces downward pressure as long-term holders increase spending by 580%, according to Glassnode metrics, contributing to recent price declines despite its strong market position. This selling activity from seasoned traders could hinder recovery, even with potential catalysts like a new spot ETF launch.
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XRP long-term holders’ spent volume surges 580%, signaling increased selling pressure.
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Payment volume for XRP has taken a significant hit, reflecting reduced transactional activity.
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XRP trades at $2.50, down 31.5% from its all-time high of $3.65, yet holds fourth place in market capitalization with substantial trading volume.
XRP price under pressure from long-term holder selling, up 580% in spent volume per Glassnode. Explore ETF launch potential and bullish derivatives sentiment for recovery insights. Stay informed on XRP trends.
What is causing the current selling pressure on XRP?
XRP is experiencing notable selling pressure primarily due to heightened activity from long-term holders, as indicated by Glassnode’s spent volume metric, which has risen by 580%. This metric tracks the total volume of cryptocurrency sold over a specific period, segmented by age cohorts to reveal sources of market activity. The surge suggests seasoned traders are offloading positions, adding downward force to the token’s price, which currently stands at $2.50 according to CoinGecko data.
How has XRP’s payment volume been affected recently?
XRP’s payment volume has suffered a substantial decline, underscoring challenges in its utility for cross-border transactions. Data from various analytics platforms, including reports by COINOTAG, highlight this drop as a key indicator of waning adoption in payment networks. For instance, transaction volumes on the XRP Ledger have decreased amid broader market corrections, with daily averages falling by over 20% in recent weeks. This reduction aligns with the overall price correction of 31.5% from the all-time high of $3.65 achieved four months ago. Experts note that while XRP maintains its position as the fourth-largest cryptocurrency by market capitalization, valued at billions, the payment volume dip could prolong recovery efforts. Ripple’s ongoing partnerships with financial institutions continue to support underlying fundamentals, but short-term metrics paint a cautious picture. To illustrate, Glassnode’s cohort analysis shows that coins held for over a year—representing mature investments—are driving much of the outflow, potentially stabilizing if inflows from new buyers increase.
Frequently Asked Questions
What impact could a spot XRP ETF have on the token’s price?
A spot XRP exchange-traded fund could provide a significant boost to XRP’s price by attracting institutional investment and increasing liquidity in the US market. As reported by COINOTAG, Canary Capital is preparing to launch what could be the first such product, potentially starting trading as early as November 13. This development might offset current selling pressures, drawing parallels to the positive effects seen in Bitcoin ETFs, though success depends on regulatory approval and market reception.
Is the derivatives market sentiment for XRP bullish right now?
Yes, the derivatives market for XRP shows slightly bullish sentiment, with CoinGlass data indicating a near 50/50 balance between long and short positions. Traders appear somewhat optimistic despite recent price struggles, but the lack of strong conviction reflects hesitation after multiple failed rallies. This balanced outlook suggests potential for upward movement if positive news, like the ETF launch, materializes, making it a key area to watch for voice searchers seeking real-time XRP insights.
Key Takeaways
- Surge in long-term holder activity: Glassnode reports a 580% increase in spent volume, pressuring XRP’s price and highlighting seasoned traders’ exits.
- Decline in payment metrics: Recent data shows substantial hits to XRP’s transaction volumes, impacting its core use case in payments.
- Potential ETF catalyst: Canary Capital’s upcoming spot XRP ETF could drive recovery, offering a bullish counter to current trends—monitor for launch updates.
Conclusion
In summary, XRP navigates challenging waters with intensified selling from long-term holders and reduced payment volumes, as evidenced by Glassnode and other analytics. Yet, the slightly bullish derivatives sentiment per CoinGlass, combined with the prospective launch of a spot XRP ETF by Canary Capital, signals opportunities for rebound. As XRP holds its fourth-place market cap ranking at $2.50, investors should stay attuned to these developments for informed decisions in the evolving cryptocurrency landscape.
