XRP New Addresses in Freefall
One of the most revealing indicators concerns the creation of new XRP addresses, which has fallen dramatically in recent weeks. After reaching a four-month peak earlier in May, with a massive influx of new wallets, the trend has sharply reversed. Glassnode data shows that only 6,336 new addresses were recently created, a concerning level that demonstrates a clear lack of interest from newcomers.
This contraction of the investor base is never insignificant in the crypto ecosystem. Without an influx of fresh capital, the demand necessary to support price increases is lacking. The market then becomes dominated by existing holders, creating an environment conducive to stagnation or pullbacks. Liquidity gradually diminishes, making each bullish movement more difficult to sustain.
The absence of new buyers also reflects a lack of positive catalysts for XRP. Potential investors appear to be waiting for clearer signals, whether on the regulatory front with the SEC or on the technical side with a confirmation of a bullish breakout. Meanwhile, the risk of prolonged consolidation or even a technical correction intensifies.
XRP: Between Consolidation and Bearish Breakout
The profitability of XRP positions continues to erode, as shown by the Long/Short MVRV ratio, which has fallen to just about 3%. This on-chain indicator reveals that even long-term investors are seeing their gains gradually melt away, a signal of structural weakness in the market. Historically, a positive but declining MVRV often precedes distribution phases, where long-term holders seek to secure their profits, intensifying selling pressure.
On the technical front, XRP is evolving in a narrow range, with a key support at $2.28. As long as this strategic level holds, lateral consolidation remains the preferred scenario. However, a breakdown below $2.28 could trigger a retreat towards $2.13, activating stop-losses and triggering a bearish domino effect fueled by increasing selling volumes and deteriorating on-chain indicators.
Conversely, an improvement in market sentiment and the return of institutional capital could allow XRP to transform the $2.36 resistance into support. This technical reversal would open the way towards $2.45 and then $2.52, invalidating the current bearish scenario and restoring bullish momentum. The market is therefore at a pivotal point, split between prolonged consolidation and potential recovery.
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