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Ripple (XRP) remains far off from its 2017 all-time high. On 4th December, it fell down to $0.60 so the question is, Is XRP’s time as a major asset coming to an end?
According to recent Santiment statistics, XRP smart whales have continued their year-long accumulation trend. ‘Smart Whales’ are basically an institutional-level investor class and these are addresses that hold 1 million to 10 million XRP tokens.
These XRP whales have increased their XRP holdings by 6% over the past 3 months. It’s important to note that the value of XRP has dropped nearly 40% in those three months.
Satimetns writes:
“XRPNetwork is currently sitting at about $0.81, but smart money whale millionaires have kept up their one-year trend of accumulating more supply. Addresses with 1M to 10M XRP hold 3.31B, including a 6% increase to their holdings in the past 3 months.”
🐳 #XRPNetwork is currently sitting at about $0.81, but smart money whale millionaires have kept up their one-year trend of accumulating more supply. Addresses with 1M to 10M $XRP hold 3.31B, including a 6% increase to their holdings in the past 3 months. https://t.co/fgP6nxM5TL pic.twitter.com/AnOV33Eo1d
— Santiment (@santimentfeed) December 11, 2021
XRP Active Addresses
While the value of XRP may decline, the number of active XRp addresses has increased over the past few months. This means that transactional activity remains very high on average, but the price does not yet reflect its growth.
XRP’s MVRV ratio
At this point, XRP’s Market Value to Realized Value (MVRV) ratio is also providing an engaging picture. A 30-day to 365-day MVRV ratio indicates a buying opportunity as both indicators are negative at the time of writing. A negative MVRV ratio means that the price of the token should rise from here since its realized value does not match the market transaction value.
Is the XRP becoming a market follower?
Not exactly, but the XRP has become more reactive to the bearish momentum. There is no demand for the asset from new crypto investors as fresh capital is moving to assets like Solana, Cardano, Shiba Inu, etc.