Ripple's XRP is showing mixed signals in the market recently. It soared to end the first quarter of 2023 positively, but the divergence between price and daily active addresses gives investors a cause for concern. On-chain data reveals a huge sell-off from long-term holders around the same time that the price was increasing. According to Santiment, the Mean Coin Age of XRP dropped during this period. This suggests that as the price rose, long-term holders were selling their coins.

The dramatic change in daily traction with the rise in price also has investors worried. XRP network daily traction sharply declined from 871,000 to 26,000 active wallets from the 19 March to 3 April. This implies that the price surge and the underlying network traction haven't been proportionate. Santiment's Market Value to Realised Value data reveals that if investors sold XRP now, they would gain a 10% profit. But if the support line fails, then prices could drop to $0.49, which would mean a 6% loss.

Alternatively, the bulls could take control if XRP passes the $0.56 mark, but the 20% profit could also lure investors in taking some profits. Ultimately, only time will tell if the recent XRP rally was shortlived or not. The next few weeks will be crucial to deciding the fate of XRP and how the support army would act.



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