Ripple’s XRP has been keeping it’s investors on the edge with the choppy price action and also it’s legal fight with the SEC. Brian Q from Santiment recently appeared on Thinking Crypto Podcast. With Big news surrounding XRP, many investors are curious about its current state, both from a social sentiment standpoint and market activity. Given the recent market downturn, there’s also a strong assumption that many are shorting the token.
He said that the social volume holding XRP has been increasing in the long run, which is good. There have been periods when rapid increases in social engagement have caused corrections but that is not the case currently since the token is optimally moving along with the market.
In terms of sentiment, it’s slightly positive, with perhaps a mild bullish bias. Nevertheless, the current market mood of XRP is a far cry from ecstasy levels of the early days of August after a colossal rise in the token value. So, for now, the state of affairs seems more balanced.
XRP Holder Growth and Wallet Trends
Another important metric to consider for XRP is the number of holders. Over the past year, XRP has seen a consistent increase in the number of non-empty wallets. Specifically, the number of wallets holding XRP has risen by over 11.2%, with 535,000 more wallets than there were a year ago. This includes both large whale wallets and smaller retail investors.
Brian also said that while the majority of non-empty wallets tend to be small retail wallets (which are easier and less expensive to create), there has been a steady increase in large wallets holding 100,000 or more XRP. These larger wallets have been accumulating XRP, particularly since April of this year.
Whale Activity and Price Correlation
By overlaying the price on the number of large wallets, an interesting correlation emerges. Historically, when the number of wallets holding 100,000 or more XRP dips, the token’s price tends to follow. While this correlation isn’t always perfect, it’s a useful metric to watch. Currently, the number of large wallets continues to rise, which bodes well for the long-term outlook of XRP.
Brian explained that this steady increase in whale accumulation supports a positive long-term outlook for XRP, even though it might not have immediate breakout potential in the short or midterm.
