XRP Price Plummets Amid Declining Network Activity and Whale Selling
XRP's recent price drop has raised concerns among analysts and investors. According to analyst Ali Martinez, the token could decline by as much as 55% due to a combination of factors.
The token's network activity has declined significantly, with active addresses falling from 46,000 to under 39,000 within several days. This is despite the fact that the holiday season typically sees decreased investor participation.
Whale investors have also been selling XRP in large quantities, disposing of more than 40 million tokens in recent days. This trend began in November when spot XRP exchange-traded funds (ETFs) launched in the U.S., and has continued unabated since then.
However, it's worth noting that the five spot XRP ETFs have attracted $1.15 billion in net inflows since November 13, outperforming their counterparts for Bitcoin, Ethereum, and Solana. This could potentially provide support for XRP's price despite the ongoing selling pressure.