XRP has experienced a price pullback of more than 15% after initially hitting a 10-month high over the past week. Last week, the world’s sixth-largest cryptocurrency by market capitalization surged past $0.58. The last time this digital asset touched this mark was in May 2022. However, since then the coin has entered a retracement losing more than 14% in 7 days.
According to a chart from TradingView, the coin is currently stuck at around $0.51, where it has been for the past two days.
Is this a mere correction or a downtrend?
With such a significant downturn, Ripple has left many investors wondering if the coin is still in an uptrend or a complete trend reversal. However, recent events in the XRP ecosystem suggest that this is not a cause for concern.
Recent trends indicate that XRP is gaining more interest from investors, as evidenced by the growing number of cryptocurrency wallet addresses. One significant trend is the steady growth in the number of XRP addresses holding $100,000 or more of the asset. This year alone, there have been more than 13,800 registered addresses with this number or more.
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XRP Address Growth Hits New Highs
An anonymous XRP supporter recently drew attention to this positive development in a tweet, highlighting a Coin Metrics chart that revealed growth in the number of XRP wallet addresses containing at least $100,000 worth of cryptocurrency.
The CoinMetrics chart indicates that there has been a significant increase in the number of XRP addresses that have a minimum value of $100,000 worth of cryptocurrency since the beginning of this year. This growth trend is similar to what was seen in 2021 when the XRP price surged to a high of $1.96 in April, despite SEC charges filed against Ripple in December 2020.
However, after reaching a peak in 2021, the number of these addresses began to decline, indicating a sizeable distribution of XRP. This decline continued in an unpredictable pattern throughout 2021 and 2022, with the number of addresses falling below 8,000 by mid-2022. The recent increase in these addresses began shortly after this decline and gained momentum this year.
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According messer, a crypto intelligence platform, the recent surge has caused the number of XRP wallet addresses containing at least $100,000 worth of cryptocurrency to rise to 13,871. Additionally, the number of XRP addresses holding at least $1 million of the asset has increased to 1,160, while those holding at least $10 million now stands at 316.
Why is the price of XRP increasing?
The recent increase in the number of XRP wallet addresses has become more and more noticeable as the price of the cryptocurrency rises, having gained more than 38% in the last month.
Also, as mentioned above, more than 50 whale addresses, holding between 10 million and 100 million XRP, were added to the network last month as the price rally gained momentum. At the time of writing, XRP is selling for $0.5091 with a 24-hour trading volume of $704,489,689.
Featured image from Unsplash.com, chart from tradingview and coinmetrics.
