XRP’s price has experienced persistent downward pressure since early October, dropping from above $0.60 to approximately $0.51, fueling investor concerns about the asset’s short-term direction.
The price slip triggered a cautious reaction among long-term holders (LTHs), who started moving their holdings after the drop, signaling a possible loss of confidence. This movement, indicated by an increase in “age consumed” data, reveals that even seasoned
XRP
investors are re-evaluating their positions, which could lead to further selling pressure if their confidence isn’t restored.
The response of LTHs, typically viewed as more resilient and committed, suggests that sentiment within the XRP community is fragile. If this uncertainty continues, additional sales from experienced holders could deepen XRP’s downward trend, further undermining the altcoin’s market stability.
Additionally, the impact of these movements could extend beyond immediate price fluctuations, potentially influencing new and existing investors’ outlook on XRP as they question its viability as a longer-term asset.
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Initially, the price drop seemed to attract new investors, as network growth data showed a short-lived surge in new addresses. This suggested that lower prices had piqued the interest of some investors, who saw the dip as a buying opportunity. However, as the downturn prolonged, enthusiasm diminished, leading to a slowdown in network growth.
The decline in new addresses hints at a broader hesitation among potential buyers, indicating that interest in XRP could continue to falter if market confidence doesn’t rebound soon. Without a shift in sentiment or clear buying support, XRP risks seeing its bearish trend intensify, leaving investors watchful for signs of stabilization.
