Ripple (XRP) Price: Will XRP See Another Decline Following the Recent Surge?

Since quite some time, Ripple has been grappling with the continuing SEC case. Buying pressure has increased, but the price of XRP has not been trending upward. Consequently making it challenging for investors to continue HODLing.

XRP and Ripple

Many cryptocurrencies have rebounded and recouped their losses since the June meltdown. However, other cryptocurrencies did not perform as well.

XRP has seen one of the most challenging stages. As of press time, the altcoin is trading at 36 cents, up 16.38 percent from its June lows.

In addition, the increased buying pressure may soon hit saturation. The trend will then reverse direction. This will result in the arduous recuperation taking a complete break.

 

Notably, XRP has decreased by 81.6% since its all-time high in May 2021.

When XRP failed to climb in October and November 2021, investors reacted indifferently. However, under the current situation, they may react. These clues are discernible on-chain.

First, the number of active addresses on the network reached its greatest single-day total since the creation of the cryptocurrency last week, topping 258k.

January 2022 was the last time so many investors were engaged.

Interestingly, the majority of these active users were long-term holders who had kept their XRP for at least a year.

Although there is no direct proof that their presence led to massive selling, it is apparent that a considerable portion of the supply held by long-term investors was involved in the on-chain transactions.

Their effort resulted in the consumption of more than 856 billion days, which is the biggest amount of days consumed in over 20 months.

This behavior was last experienced in November 2020, when XRP dropped 42 percent in two weeks.

 

Therefore, this demonstrates that long-term holders (LTHs) only act when XRP is in a non-profitable state, and if the altcoin remains in this phase for an extended period of time, it could result in these investors’ exit.