XRP News Today: XRP Network Activity Drops 43% as Whale Transfers Drive 11% Price Slide

XRP’s network activity has sharply declined amid heightened market anxiety triggered by large-scale token movements linked to Ripple co-founder Chris Larsen. Active addresses on the XRP blockchain plummeted from over 44,000 to approximately 25,000 within a week, reflecting a significant cooldown in usage after a brief surge. This decline coincided with a 11% drop in XRP’s price, from $3.55 to $3.16, as traders closely monitor the $3 support level. Capital has increasingly shifted toward Bitcoin, stalling interest in altcoins and compounding pressure on XRP’s market position [1].

The uncertainty stems from the transfer of over $140 million worth of XRP to exchanges since July 17, attributed to Larsen’s transactions. A total of 50 million tokens have been moved, with some ending up in dormant wallets, raising questions about potential sell-offs. While some observers argue these movements could be routine, analysts caution that Larsen’s remaining holdings—estimated at 2.5 billion XRP—could destabilize the market if further large transfers occur. The ambiguity surrounding the purpose of these transfers—whether for liquidity needs or strategic positioning—has amplified volatility [1].

XRP’s recent performance contrasts with earlier optimism, as the token’s momentum has waned amid broader market trends. The cryptocurrency’s price recovery is now increasingly tied to Bitcoin’s trajectory rather than internal developments. Analysts note that a resolution to Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) or the approval of a spot XRP exchange-traded fund (ETF) could provide a catalyst for renewed interest. However, in the absence of such regulatory clarity, XRP faces headwinds from reduced network activity and speculative selling pressure [1].

The broader altcoin market has also struggled to gain traction, with capital flows consolidating around Bitcoin and Ethereum. XRP’s decline mirrors this trend, as its price action and network metrics align with a retreat from smaller cryptocurrencies. Short-term volatility may persist, but the path to recovery hinges on external factors rather than organic growth in usage or demand. The movement of tokens to dormant wallets further complicates the outlook, as it remains unclear whether these holdings signal long-term strategies or immediate liquidity requirements [1].

Source: [1] [XRP Network Activity Plummets as Whale Transfers Stir Market Anxiety] [https://coindoo.com/market/xrp-network-activity-plummets-as-whale-transfers-stir-market-anxiety/]