- In recent months, the flow from whales to exchanges has decreased dramatically.
- Network activity was relatively good, but short-term sentiment remained weak.
XRP failed to overcome the intermediate resistance level of $0.585. In fact, XRP fell 5.35% from $0.6 to $0.568 in just the last three days. However, on-chain indicators offered hope that the bearish short-term price action would offset the one-year range-bound trading.
According to a recent report, XRP whales have taken advantage of the price drop to add over 50 million tokens to their holdings. AMBCrypto took a closer look at other metrics to see if there is more good news for XRP investors elsewhere.
Whale to Exchange Flow Hits Lowest Level Since 2020
Source: CryptoQuant
The Whale to Exchange Flow metric measures the amount of tokens transferred from Whale to exchanges. This metric recently hit its lowest level since October 2020.
A surge in this indicator is usually accompanied by a price surge in either direction. The long-term bullish situation has been reinforced with prices reaching their lowest levels in nearly four years.
Source: Santiment
The daily active addresses metric has been stable for the past two months. There have been some weekend spikes, but it has not been a sustained rise. Likewise, network growth has been stable since mid-July.
Overall, the network appears healthy and growing, but there is no significant increase in daily activity.
Additionally, the MVRV ratio showed that XRP was an undervalued asset as 30-day holders incurred slight losses.
XRP speculative market remains uncertain so far
Source: Coinalyze
Throughout August, XRP bulls fought hard to push the price above the $0.6 resistance zone. Their efforts were in vain, and the highest they achieved was $0.634. Over the past three weeks, the open interest has remained in the range of $430 million to $490 million.
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This means that each breach of $0.60 attracted bullish speculators, but demand was not strong enough to turn resistance into support. Funding has also declined recently, highlighting the weakening of bullish confidence in the market.
Overall, the short-term sentiment seemed to be swinging between bullish and bearish. However, the long-term outlook remains bullish, as evidenced by whale activity and stable network activity indicators. However, investors will need to be very patient.