XRP Sinking? A Double Blow Of Underperformance And Address Exodus
28 February 2024 - 7:00PM
NEWSBTC
Ripple’s XRP has been struggling to regain its momentum, as its
performance continues to lag behind that of its competitors in the
crypto market. Recent data from CoinMarketCap reveals that XRP has
been the most underperforming large-cap cryptocurrency over the
past month, with gains of just over 4%. This stands in stark
contrast to the significant increases seen in cryptocurrencies such
as Bitcoin, Ethereum and Solana, to name a few, leaving investors
disappointed and questioning the future of the digital asset.
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Frog-Themed Meme Coin? Are Whales Slowly Losing Appetite For XRP?
Adding to the challenges, data from Santiment indicates that XRP
whales, the major holders of the cryptocurrency, have shown a lack
of confidence in the digital asset. The percentage of the coin’s
supply in profit has declined from almost 90% in November last year
to below 80% at present. Source: Santiment This decrease suggests
that XRP whales have been selling their holdings rather than
accumulating more, painting a bearish picture for the
cryptocurrency’s future. Furthermore, XRP whales have exhibited
lower long exposure compared to retail investors, who are typically
considered to have a better understanding of market trends. This
lack of conviction among whales further dampens sentiment
surrounding XRP. Once a prominent player in the cryptocurrency
market, XRP has experienced a significant decline in its influence.
CoinMarketCap data highlights that XRP’s dominance in the market
has plummeted from a peak of 30% in 2017 to a mere 1.48% as of
February 2024. XRP market cap currently at $31.4 billion. Chart:
TradingView.com The SEC lawsuit initiated against Ripple, the
company behind XRP, along with the bear market of 2022, have taken
a toll on the cryptocurrency’s value. Since reaching its peak in
January 2018, XRP has lost nearly three-quarters of its market
valuation, leaving investors and enthusiasts disheartened. While
the recent price action and market sentiment surrounding XRP may
not inspire much optimism, the cryptocurrency landscape remains
highly unpredictable. Investors and enthusiasts will closely
monitor XRP’s ability to regain its footing and overcome the
challenges it currently faces. As the market continues to evolve,
only time will reveal whether XRP can regain its former glory or if
it will continue to struggle amidst fierce competition in the
cryptocurrency space. IMF Report Could Push XRP Price Up
Despite these challenges, there are potential catalysts that could
inject positive energy into the market. A recent report from the
International Monetary Fund (IMF) on the importance of digital
currencies has garnered investor interest. Source: IMF The report
examines the potential benefits of digital money in advancing
public policy goals, such as financial inclusion and improved
cross-border connectivity. Notably, the report highlights Ripple’s
partnership with Palau, where they are exploring plans to launch a
sovereign stablecoin. This collaboration underscores Ripple’s
global reach and its involvement in the development of central bank
digital currencies and sovereign stablecoins. Related Reading: Bull
Run Returns? Bitcoin Breaks Through $57,000 Barrier XRP’s struggle
to regain momentum and underperformance compared to its competitors
have disappointed investors. The declining influence of XRP,
coupled with a lack of confidence displayed by XRP whales, further
amplifies concerns about the cryptocurrency’s future. However,
potential positive developments, such as the IMF report and
Ripple’s partnership with Palau, offer a glimmer of hope amidst a
challenging environment. The sixth-largest cryptocurrency was
trading at $0.56 at the time of writing, and bulls’ prior attempts
to break through that barrier had failed. Featured image from ,
chart from TradingView
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