[Breaking] As Ripple (XRP) moves around the $1.09 level, on-chain data is simultaneously showing mixed behavior from retail investors and large holders (whales). With overall market sentiment shrinking, whale movements are drawing attention as a key variable for future price trends.

Retail Investor Participation Slows, Panic Selling Increases

Cryptocurrency market analyst David the Builder recently diagnosed through analysis that while the XRP market outwardly shows significantly weakened investor sentiment, large investors are behaving in the exact opposite direction from retail investors.

According to the analysis, XRP has experienced a continued price correction alongside declining trading participation in recent months. As volatility in major cryptocurrency markets, including Bitcoin, and macroeconomic uncertainty persist, retail investors' interest has been assessed to have declined significantly compared to before.

On-chain metrics also reflect the same trend.

• Continued decline in active addresses
• Contraction in large transaction volumes
• Concurrent decrease in futures market open interest

This suggests that short-term speculative trading has decreased and a wait-and-see approach among market participants has strengthened. Cases of selling at a loss are also increasing, and patterns of long-dormant XRP moving again have been confirmed. This was analyzed as a characteristic that frequently appears during market downtrends or periods of panic selling.

Whales Actually Strengthening Accumulation

On the other hand, the movement of large-scale investors shows the exact opposite trend. Since the beginning of this year, the number of wallets holding between 10 million and 100 million XRP has steadily increased. The analysis observed that relatively large capital is absorbing the sell-offs from general investors.

MVRV, a representative on-chain metric that compares market value to realized value, is also moving below its baseline. Generally, when MVRV remains in negative territory, it serves as a reference indicator suggesting undervaluation, as the market price is below the average purchase price. However, this metric alone cannot definitively predict future price increases.

Holding $1 Is Key... Expectations for a Bottom Also Emerge

Looking solely at chart movements, XRP is in a situation where it is still difficult to confirm a clear uptrend, and maintaining the $1 level is critical. The current price is $1.09. However, if accumulation by long-term holders and large-scale investors continues and retail selling pressure gradually eases, some are raising the possibility of a market bottom forming.

Risk Factors Remain

The cryptocurrency market may experience significantly expanded volatility depending on changes in U.S. monetary policy, global investor sentiment, Bitcoin price trends, and geopolitical variables. Recent Middle East tensions surrounding the U.S. and Iran are also cited as a variable that could affect risk asset investment sentiment, prompting calls to examine not only on-chain data but also the macroeconomic and market environment together.

[This article was written with AI assistance. Investment decisions are your own responsibility, and cryptocurrencies are highly volatile assets that may result in losses.]