XRP Active Addresses Surge as Price Plunges, Whales Quietly Exit
XRP is facing steep selling pressure despite a surge in the number of active on-chain addresses, as strong buying momentum in the market has failed to provide sufficient support.
According to cryptocurrency-focused media outlet FXStreet on February 11 (local time), the number of active addresses conducting transactions on the XRP network has recently surged, demonstrating apparent network growth. However, actual price action has moved in the opposite direction, showing weakness. On-chain data analysis suggests that increased network activity has not translated into a price rally but is instead being used as an opportunity for short-term profit-taking. In particular, large holders have been moving funds to exchanges, adding downward pressure and hindering price recovery.
The Relative Strength Index (RSI), a key technical indicator, is forming a bearish divergence within a downtrend, signaling the possibility of further price corrections. As XRP repeatedly fails to break through major psychological resistance levels and retreats, selling pressure has intensified, fueling fear-driven panic selling among investors. The Market Value to Realized Value (MVRV) ratio has also broken downward from overheated territory, indicating that the price could fall below its fair value, heightening market anxiety.
The market is now closely watching whether XRP can defend its key support level. If the current support range collapses, there is a high risk of a sharp decline to a lower level accompanied by large-scale liquidation of short positions. While some optimists argue that the increase in active network addresses could lay the groundwork for long-term ecosystem expansion, the prevailing view is that it is insufficient to resolve the short-term supply-demand imbalance. The simultaneous weakness of major assets such as Bitcoin (BTC) is also acting as a strong external factor limiting XRP’s rebound.
Among XRP holders, there are clear signs that investors who have entered profitable territory are rushing to lock in gains. On-chain exchange inflow data remains elevated, suggesting a substantial amount of potential sell-side supply waiting on the sidelines. Unless the selling pressure led by large players subsides, any technical rebound is likely to be limited to a temporary dead cat bounce, indicating a risky zone where retail investors could end up buying near local highs.
Amid shrinking liquidity across the broader cryptocurrency market, XRP is grappling with the dual challenge of network growth overshadowed by strong underlying selling pressure. As prices tilt downward, sidelined buyers have adopted a wait-and-see approach, and a decisive trend reversal will require powerful trading volume capable of fully absorbing the selling supply. Investors must carefully assess the true supply-demand dynamics behind on-chain data and remain vigilant in managing risks amid heightened volatility.
*Disclaimer: This article is for investment reference only and does not assume responsibility for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*
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