Ripple has been dealing with the pending SEC lawsuit for quite some time now. Buying pressure has increased, but the price of XRP has not followed an upward trend. This makes it difficult for investors to proceed with HODLing.
XRP and its ripples
After the June crash, many cryptocurrencies rallied and recouped their losses. However, some other cryptos did not perform very well.
XRP is in one of the tough phases. The altcoin is up 16.38% from June lows to trade at 36 cents during press time.
To make matters worse, increasing buying pressure could soon reach saturation. It will then reverse the active uptrend. This will ensure that the difficult recovery is interrupted altogether.
Notably, XRP is down 81.6% from its all-time high in May 2021.
The investors did not react much when XRP did not rise in October or November 2021. But in the current peak, they could respond. The hints of this are visible on the chain.
First, active addresses on the network peaked at their highest one-day figure since the cryptocurrency’s inception touched 258k last week.
The last time these many investors were active was in January 2022.
Interestingly, most of these active users were long-term holders who had held their XRP for at least a year.
While there is no explicit evidence whether their appearance led to any significant sale, it is certain that many of the long-term holders’ supplies were involved in the on-chain transactions.
Their activity resulted in the consumption of more than 856 billion days, the highest consumption in almost 20 months.
The last time such a phenomenon was observed was in November 2020, when XRP fell by 42% in two weeks.
So this proves that the long-term holders (LTHs) only make a move when XRP is in an unprofitable state, and if the altcoin is stuck in this phase for a long time, it could even lead to the departure of these investors.
This post Will XRP holders witness another crash after a recent spike?
was published first on https://ambcrypto.com/assessing-if-xrp-holders-will-witness-another-crash-post-recent-spike/