What to Know:
- Long-term XRP holders have significantly increased their selling activity, potentially pressuring the token’s price.
- A spot XRP ETF could launch soon in the U.S., potentially boosting the price.
- Derivatives market sentiment for XRP is mixed, reflecting a lack of strong conviction among traders.
XRP is currently navigating a complex landscape as long-term holders increase their selling activity. This development coincides with anticipation surrounding a potential spot XRP exchange-traded fund (ETF) in the U.S. and mixed sentiment in the derivatives market.
Data from Glassnode indicates that long-term XRP holders have increased their spending by approximately 580% since early August. This surge in selling activity by seasoned traders suggests a potential shift in sentiment among those who have held the token for an extended period. “Spent volume” is a Glassnode metric, which shows the total volume of crypto that has been sold over a certain period of time.
Since early August, XRP price has dropped from $3.3 to $2.4 (-27% 🎯).
At the same time, long-term holders who accumulated before Nov 2024 ramped up their spending by ~580%, from $38M/day to $260M/day (7D-SMA)A clear sign of seasoned traders exiting and adding pressure to… pic.twitter.com/q5h02AsdrJ
Canary Capital might be preparing to launch the first spot XRP ETF in the U.S., potentially as early as November 13. The launch of a spot XRP ETF could provide increased accessibility and exposure to XRP for a broader range of investors. Depending on the success of its launch, the price of XRP could experience a notable upswing.
Currently, XRP is trading around $2.50, down from its all-time high of $3.65, but remains a top cryptocurrency by market capitalization. Despite the potential catalyst of a spot ETF, the derivatives market sentiment for XRP remains indecisive. The ratio of bulls to bears is nearly 50/50, indicating a lack of strong conviction among traders regarding the token’s near-term prospects.
The cryptocurrency market is watching closely to see how these factors play out and influence XRP’s price trajectory. The launch of a spot ETF could change the game for XRP.
Source: Original article
