XRP News Today: XRP's dormant coins re-entering circulation as MDIA drops 13%

XRP, the third-largest cryptocurrency by market capitalization, is exhibiting signs of increased market activity as dormant coins re-enter circulation. Recent data from on-chain analytics platform Santiment indicates a 13% decline in the Mean Dollar Invested Age (MDIA) over the past month, erasing approximately 91 days of age. This drop suggests heightened turnover among long-held tokens, a metric historically linked to redistribution risk in markets [1]. Simultaneously, sharp spikes in the Age Consumed indicator have been observed, signaling substantial movement of previously inactive XRP holdings. These patterns align with behavior typically associated with early investors or large holders ("whales") rotating capital [2].

The reactivation of dormant XRP has sparked debates about the direction of capital flows. Analysts are weighing whether these movements represent risk-hedging strategies or attempts to capitalize on recent price strength. Despite these dynamics, XRP remains within a structurally robust framework. The altcoin has surged 40% on a monthly basis, maintaining a key support level around $3.15. However, the influx of long-held supply into circulation raises questions about potential downward pressure should buyer demand wane [3].

Price action further underscores the asset’s volatility. While XRP has rallied 64% from its July low of $2.23 to a monthly high of $3.64, its relative performance lags behind Ethereum (ETH), which closed the month with a 50% gain and demonstrated stronger capital retention. XRP has since retreated over 10% in late July, coinciding with a $9.3 million contraction in the XRP Ledger’s Total Value Locked (TVL). This drawdown suggests profit-taking or early de-risking behavior, amplifying the asset’s sensitivity to broader market sentiment [4].

The $3 support zone is now under scrutiny, with analysts noting that a breakdown could test the $3.15 level. Smart money appears increasingly reactive, adjusting exposure rapidly to volatility shifts. This behavioral pattern may intensify if risk-off flows accelerate, particularly in a market environment where liquidity is thinning.

Critically, the interplay between on-chain metrics and price action highlights a fragile equilibrium. While XRP’s technical structure remains intact, the activation of dormant supply introduces a layer of uncertainty. Investors are advised to monitor the $3.15 threshold closely, as its resilience could determine whether the altcoin sustains its upward trajectory or faces renewed bearish pressure [5].

The broader cryptocurrency market’s response to these developments will likely shape XRP’s path toward $4. For now, the asset’s trajectory hinges on whether the current wave of capital rotation stabilizes supply-side dynamics or exacerbates near-term volatility.

Sources:

[1] title: Dormant XRP coins wake up: What means for the altcoin’s road to $4

url: https://ambcrypto.com/dormant-xrp-coins-wake-up-what-means-for-the-altcoins-road-to-4/

[2] title: Dormant XRP coins wake up: What means for the altcoin’s road to $4

url: https://ambcrypto.com/dormant-xrp-coins-wake-up-what-means-for-the-altcoins-road-to-4/

[3] title: Dormant XRP coins wake up: What means for the altcoin’s road to $4

url: https://ambcrypto.com/dormant-xrp-coins-wake-up-what-means-for-the-altcoins-road-to-4/

[4] title: Dormant XRP coins wake up: What means for the altcoin’s road to $4

url: https://ambcrypto.com/dormant-xrp-coins-wake-up-what-means-for-the-altcoins-road-to-4/

[5] title: Dormant XRP coins wake up: What means for the altcoin’s road to $4

url: https://ambcrypto.com/dormant-xrp-coins-wake-up-what-means-for-the-altcoins-road-to-4/