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XRP's Important On-Chain Metric Plummets, But There's Silver Lining

Fri, 09/15/2023 - 11:10
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Arman Shirinyan
Active addresses on XRP are plummeting, but it is not death sentence for cryptocurrency
XRP's Important On-Chain Metric Plummets, But There's Silver Lining
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Let's talk about XRP, a cryptocurrency that has been through its fair share of ups and downs. Recently, an on-chain metric that usually gets a lot of attention has taken a nosedive. We are talking about the Active Addresses Count, which has hit a local low. Now, before you start panicking, let's consider why this might not be the end of the world for XRP.

First off, the current price of XRP hovers around $0.50, as of the latest data. While this might not be a jaw-dropping figure, it is crucial to remember that price is not the only indicator of a crypto asset's health.

Why could a drop in Active Addresses Count be a good thing? Well, it might indicate that short-term traders and speculators are exiting the market, leaving room for more committed investors. These are the folks who believe in XRP's long-term potential and are less likely to sell at the first sign of trouble. Their presence could provide a more stable foundation for future growth.

XRP chart
Source: TradingView

Now, let's address the elephant in the room: trading volume. It is on the lower side for XRP, which would usually be a cause for concern. However, low volume is not always a bad omen. It could mean that those who are currently invested are holding onto their assets, again pointing to a more stable investor base.

While the plummeting Active Addresses Count and low trading volume might seem like red flags, they could be setting the stage for a more robust XRP market. Sometimes, what appears to be a setback actually clears the path for something better.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.