XRP has experienced over 15% price retracement after initially hitting a whooping 10-month high over the last week. The past week has seen the sixth-largest cryptocurrency in the world by market capitalization rise to over $0.58. The last time this digital asset touched this mark was May 2022. However, the coin has since entered a retracement losing over 14% in 7 days.
According to a chart by TradingView, the coin currently plateaus at around $0.51, where it has been for the past two days.
Is This A Mere Correction Or 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 happenings in the XRP ecosystem suggest that this is nothing to be worried about.
Recent trends indicate that XRP is gaining more interest from investors, as evidenced by the increasing number of cryptocurrency wallet addresses. One significant trend is the consistent growth in the number of XRP addresses holding $100,000 or more of the asset. This year alone, there have been over 13,800 recorded addresses with this amount or more.
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Growth Of XRP Addresses Reaches New Highs
An anonymous XRP supporter recently drew attention to this positive development in a tweet, highlighting a chart from Coin Metrics that revealed the growth in the number of XRP wallet addresses containing at least $100,000 worth of the cryptocurrency.
The CoinMetrics chart indicates that there has been a significant increase in the number of XRP addresses holding a minimum of $100,000 worth of cryptocurrency since the beginning of this year. This growth trend is similar to what was observed in 2021 when XRP’s price surged to a high of $1.96 in April, despite the SEC charges filed against Ripple in December 2020.
However, after reaching a peak in 2021, the number of these addresses began to decrease, indicating a considerable distribution of XRP. This decline continued in an unpredictable pattern throughout 2021 and 2022, with the number of addresses falling below 8,000 in mid-2022. The recent surge in these addresses began shortly after this decline, gaining momentum this year.
According to Messari, a crypto intelligence platform, the recent uptick has caused the number of XRP wallet addresses holding at least $100,000 worth of cryptocurrency to rise to 13,871. Additionally, the number of XRP addresses holding at least $1 million worth of the asset has surged to 1,160, while those holding at least $10 million now stand at 316.
Why Is XRP’s Price Rising?
The recent surge in the number of XRP wallet addresses has become increasingly noticeable as the cryptocurrency’s price rallies, having gained over 38% in the past month.
Moreover, as previously mentioned, over 50 whale addresses, holding between 10 million and 100 million XRP, were added to the network last month as the price rally picked up momentum. At the time of writing, XRP sells at $0.5091 with a 24-hour trading volume of $704,489,689.
Featured Image from Unsplash.com, chart from tradingview and coinmetrics.