Despite facing persistent price pressure, XRP is showing a surprising divergence between market performance and network adoption.
On the charts, XRP’s price has been range-bound in recent weeks, moving between $1.28 and $1.35, after failing to sustain a breakout above $1.35.
But while the cryptocurrency has struggled to hold recent gains, the number of active wallets on the XRP Ledger continues to grow steadily, signaling that interest in the network remains strong even in the face of losses.
Wallet Growth Remains Strong
On-chain data from CryptoQuant, highlighted by crypto analyst Eri ~ Carpe Diem, reveals that XRP’s wallet count has steadily increased, reaching over 8 million addresses.
This growth comes even as the token’s price remains subdued, trading around $1.31 after a recent pullback from $1.35.
Analysts point out that this upward trend in wallet numbers indicates that more users are joining the XRP ecosystem, possibly for long-term holding or transactional purposes, rather than short-term trading.
The growth in wallets contrasts sharply with the token’s price trend. While XRP has faced downward pressure and volatility over the past year, more users appear to be entering the network, creating a divergence that many market watchers find noteworthy. This pattern suggests that while price action is weak, confidence in the underlying utility and adoption of XRP may be strengthening.
XRP Holders in Deep Losses
Despite increasing adoption, XRP holders are currently experiencing significant unrealized losses.
The 365-day Mean Value to Realized Value (MVRV) metric, which tracks the average profit or loss of token holders, shows that wallets are down roughly 41% on average, the lowest level for this metric since late 2022.
These losses indicate that a large portion of holders are underwater, which can weigh on market sentiment. At the same time, low MVRV levels have historically been seen as contrarian signals, hinting at potential opportunities for buyers willing to enter the market during periods of widespread loss.
However, prolonged periods of negative sentiment could keep selling pressure high, preventing a sustained price rebound in the short term.
Tightening Market Liquidity
Market liquidity has also been tightening, with thinner order books making price movements more sensitive to large trades. This lack of depth means that even small sell-offs or withdrawals can have an outsized impact on the token’s price, contributing to short-term volatility.
In addition, periods of low activity can mask true demand and make breakout attempts less reliable. As a result, traders looking to enter or exit positions should account for potential slippage and avoid over-leveraging in such conditions.
XRP Price Outlook
Looking ahead, the immediate support appears to be firming around $1.28, with a secondary floor near $1.25 providing additional downside protection.
On the upside, a successful breakout above $1.35 could open the path to the next resistance zone around $1.40–$1.42. Analysts note that if the altcoin managed to break above these levels, then it could signal a renewed bullish phase that could see the price rise past $1.66.
Conversely, failure to hold support levels around $1.28 could see XRP retest lower areas near $1.22–$1.23.
