tl;dr
As the second quarter ended, XRP saw a significant rise in on-chain activity indicating bearish sentiment among holders. Increased movement of dormant tokens suggests long-term holders may be selling, expecting a price drop. Santiment data showed XRP’s Dormant Circulation (90 days) reached 387.19 mi...
As the second quarter closed, XRP experienced a notable surge in on-chain activity, signaling bearish sentiment among holders. A sharp increase in the movement of dormant tokens suggests that long-term holders (LTHs) might be offloading their assets, potentially anticipating a price decline as the third quarter begins.
On-chain data from Santiment highlighted that XRP’s Dormant Circulation (90 days) metric rose to 387.19 million, marking the highest level in three weeks. This metric tracks tokens inactive for at least 90 days that suddenly moved within 24 hours, often indicating seasoned investors exiting positions to either secure profits or avoid losses. This uptick raises concerns about potential downward pressure on XRP.
Additionally, XRP’s Liveliness, which measures the ratio of coin days destroyed to total coin days accumulated, reversed its prior steady decline by climbing to 0.809. An increase in liveliness points to dormant tokens being moved or sold, reinforcing signs of profit-taking behavior among long-term holders.
The technical landscape further supports this bearish outlook. XRP’s Balance of Power (BoP) indicator, currently at -0.62 on the daily chart, suggests sellers hold the upper hand. The BoP compares buying and selling strength, and a negative reading typically signals dominant selling pressure and the likelihood of a downtrend.
Collectively, these metrics paint a picture of cautious XRP holders possibly preparing for further declines. Will this bearish momentum continue into the new quarter, or will fresh buyers step in to support the token? Investors should watch these on-chain signals closely as the market dynamics unfold.