XRP has fallen to its lowest price in 21 months, a significant downturn that occurred in August. Despite this market weakness, on-chain data presents a complex picture, revealing increased activity among existing network users while new user growth remains stagnant. Concurrently, large XRP holders, often referred to as ‘whales,’ have continued to increase their holdings.
Price Performance and Selling Pressure
XRP’s price closed at its lowest level since November 2024, now standing 70% away from its all-time high. Data from Binance indicated selling pressure, with XRP’s Taker Buy/Sell Ratio dropping to 0.86 in August. A ratio below 1 suggests that more aggressive selling occurred than buying. analysts suggest this trend could continue, with some anticipating further dips below the $1.00 mark. This selling pressure does not appear to be abating, and derivatives traders are reportedly remaining defensive.
Network Activity: A Mixed Picture
In contrast to the price decline, XRP’s network activity showed signs of life. Daily active addresses averaged 35,700 in August, a notable increase from July’s average of 26,400. August 11 was particularly active, marking the busiest day for XRP in terms of daily active addresses since early June. However, this rise in user activity is not mirrored in new user acquisition. The number of new XRP addresses created in August was 2,260, a slight decrease from July’s 2,270. This suggests that while the existing user base is transacting more, the overall user base is not expanding, leading to the interpretation that the ‘rising user activity’ narrative is only partially accurate.
Whale Behavior and Holder Confidence
Despite the price struggles, large XRP holders have demonstrated continued confidence. The number of wallets holding at least one million XRP tokens has increased by 32 over the past three months. This accumulation by ‘whales’ occurred even as XRP’s market capitalization declined by nearly 30% in the same period. This divergence indicates that significant market participants, often considered ‘smart money,’ remain invested, suggesting holder confidence is solid among this group.
Broader Ripple Ecosystem Context
Adding another layer to Ripple’s ecosystem, its stablecoin, RLUSD, recently reached a market capitalization of $1.6 billion. This development, alongside growing interest in Ripple’s other services such as payments, custody, and tokenization, highlights that the current price struggles appear to be primarily concentrated with XRP itself, rather than the broader company or its other offerings.
Uncertainty and Outlook
The conflicting signals—a falling price alongside increased network engagement from existing users and accumulation by large holders—create an uncertain outlook. While the network shows signs of robust activity among its current participants, the stagnant growth in new addresses raises questions about future user base expansion. The continued accumulation by whales, however, suggests a level of underlying confidence in XRP’s long-term prospects, even as its price remains under pressure.
Why This Matters
The materials describe a narrow update: XRP’s price fell to a 21-month low, with selling pressure indicated by the Taker Buy/Sell Ratio. Whether XRP will experience at least one more dip below $1.00.
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