en.bitcoinsistemi.com
Cryptocurrency analytics firm CryptoQuant has released a remarkable assessment of Ripple ($XRP). According to the firm’s data, activity on the $XRP Ledger has fallen by 80% since its peak in December, reaching unprecedented lows in recent months.
This decline is not limited to on-chain data. A similar decline is also observed in the $XRP futures market. There has been a decrease of approximately 70% in open interest, with these levels last seen in November 2023. In addition, funding rates are also in a downward trend and have turned negative at times.
According to CryptoQuant’s assessment, $XRP’s estimated leverage ratio is also on the decline. This ratio is calculated by dividing open positions by the $XRP reserves on an exchange and reflects the average leverage usage of users.
Despite all this negative data, the $XRP price is only down about 35% from its December peak, a more limited decline compared to other major crypto assets like Ethereum, which has lost close to 60% of its value in the same period.
Another noteworthy data is the continuous decline in exchange reserves on the $XRP Ledger. Exchange reserves, which have fallen to levels last seen in July 2023, may indicate that investors prefer to withdraw their $XRP from exchanges and store it for the long term.
CryptoQuant claims that this data could be a potential recovery signal for $XRP. The relative resilience of the price and the decline in exchange reserves could indicate positive investor sentiment for $XRP, even if market conditions remain challenging.
*This is not investment advice.