After indigent performance in the first two months of the year, the XRP price appears to have stabilized its movements, raising investors’ hopes for relief. However, the latest network analysis suggests that the altcoin may not have hit a true local bottom yet.

Number of days spent with profit still quite low – analyst

In a recent post on social media platform X, network analyst Joao Wedson offered insight into the XRP market, claiming that the cryptocurrency, contrary to popular expectations, has not yet entered the early phase of a price recovery. This chain hypothesis is based on data from the Days Spent Profit metric.

For context, this metric indicates how long current XRP holders have been making profits, compared to past price levels. As the name suggests, the indicator measures how many days have passed since XRP was last at a higher price.

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According to Wedson, this ratio has historically reached extreme levels during periods when the number of profitable days rose to high levels. It is worth noting that the case differs from the usual historical context, as the price of XRP continues to trade well below these “hallmarks”.

The market expert explained that this historical context suggests that the XRP price may see more downward movement in the near to medium term. The analyst also pointed out that this is the main condition for the formation of historical patterns, which in turn precedes the formation of previous lows.

XRP Ledger records expansion across multiple wallet sizes

At the same time, blockchain analytics firm Santiment revealed that the XRP ledger has seen significant growth recently. Interestingly, much of this expansion is due to a significant raise in the number of compact wallets storing XRP.

The most noticeable raise was seen among a group of investors typically referred to as “shrimps” (those holding less than 100 XRP in their portfolios). According to Santiment, these shrimp wallets total approximately 5.66 million separate addresses, reflecting the widespread adoption of XRP by retailers and everyday users.

At the same time, the number of wallets containing 100 to 100,000 XRP also increased, reaching approximately 2.01 million wallets. Since this group represents the mid-level of investors who make up a significant portion of the network, this may mean that there has been an influx of more sedate accumulators into the XRP market.

While the number of compact wallets has shown impressive growth, the number of immense capacity wallets has seen relatively little growth. Santiment revealed that the value of these wallets with over 100,000 XRP is capped at approximately 32,054. From this it appears that this group of investors were mainly involved in distribution or repositioning events.

With little impact from whales on XRP prices, it becomes more obvious that a local bottom could still see lower prices. At the time of writing, XRP is trading at around $1.44, reflecting a loss of 0.4% in the last day.

Featured image by DALL-E, chart from TradingView