Ripple Sees Slowing Selling Pressure, But Challenges Remain
On-chain data suggests that selling pressure on Ripple has decreased significantly. The average monthly inflow of XRP to Binance has reached a historic low of 3.6 million units. This is accompanied by an increase in withdrawal transactions from exchanges, which now account for 55.6% of all transactions - the highest level since February 2021.
This shift indicates that Ripple holders are becoming less willing to transfer their assets to exchanges for sale. However, despite this decrease in selling pressure, significant challenges remain for the asset. Historically, August has been a relatively stable month for Ripple, but it has also closed in a downward trend for four consecutive years.
The lack of institutional demand is another concern, with spot funds recording only $19.6 million in inflows in July - a far cry from what would be needed to sustain a price above $1 this month.