Ripple (XRP) Network Activity Decreases, Whales Withdraw XRP from Exchanges! What Does It Mean? Analyst Shared the Price Movement He Expects!

Crypto analysis company CryptoQuant published a remarkable assessment regarding Ripple (XRP). According to the company’s data, activity on the XRP Ledger has decreased by 80% after the peak in December, reaching unprecedented low levels in recent months.

This decline is not limited to on-chain data. A similar downturn is observed in the futures market for XRP as well. While the open interest has seen a decrease of about 70%, these levels were last seen in November 2023. Additionally, funding rates are also in a downward trend and have occasionally turned negative.

According to CryptoQuant's assessment, the estimated leverage ratio of XRP is also on the decline. This ratio is calculated by the ratio of open positions on exchanges to the XRP reserves on that exchange, reflecting the average leverage usage of users.

Despite all these negative indicators, the XRP price has only lost about 35% compared to its peak in December. This rate indicates a more limited decline compared to other major crypto assets like Ethereum, which lost nearly 60% during the same period.

Another striking piece of data is the continuous decline of exchange reserves on the XRP Ledger. The exchange reserves, which have fallen to levels seen in July 2023, may indicate that investors prefer to withdraw their XRP from exchanges and hold them for the long term.

CryptoQuant claims that this data could be a potential recovery signal for XRP. The relative resilience of the price and the decline in exchange reserves may indicate a positive investor sentiment towards XRP, even though market conditions are challenging.