Ripple’s XRP has been on a downward trajectory, losing nearly 10% in the past two weeks.
The token’s decline since August 14 has now caused a split in investor behavior, as on-chain data points to diverging strategies between different holder cohorts. What does this mean for XRP holders?
Can Dip Buyers Outlast Long-Term Holder Distribution?
Short- and mid-term holders appear to view the pullback as a chance to accumulate. On-chain analysis indicates that these newer market entrants have increased their supply during the dip over the past two weeks, betting on a near-term rebound.
According to data from Glassnode, XRP’s HODL Waves, a metric that tracks how long coins have been held, reveal that two investor cohorts are becoming increasingly active.
Those who have held their tokens between one and three months (short-term holders) currently control 9.51% of the token’s circulating supply. This group has increased its collective holdings by 8% since August 14, reflecting its conviction in a potential rebound.
Mid-term investors have also joined in “buying the dip.” Per Glassnode, the 6–12 month cohort now controls 23.19% of XRP’s circulating supply, its highest share year-to-date. This further shows renewed accumulation as XPR trades low.
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However, the optimism of these buyers contrasts with the behavior of longer-term holders (LTHs). This is depicted by XRP’s Liveliness, which has climbed steadily since August 19.
An asset’s liveliness tracks the movement of its long-held/dormant tokens. It does this by measuring the ratio of an asset’s coin days destroyed to the total coin days accumulated. When the metric climbs, it means that LTHs are moving their coins or selling them.
When it falls, LTHs are moving their assets off exchanges, a move seen as a bullish signal of accumulation.
On the other hand, when it climbs, LTHs are moving their coins or selling them, a trend that is now putting additional selling pressure on XRP.
XRP Struggles for Direction
The divergence in the behaviors of these investor cohorts shows the uncertainty surrounding XRP’s near-term trajectory. Its recovery is dependent on whether fresh demand from newer buyers can outweigh the selling pressure from seasoned investors.
In this case, it could rebound, regain the $3 mark, and climb toward $3.22.
However, if selloffs strengthen, XRP’s price could extend its decline and drop to $2.63.
