Despite the decline in XRP, investors are making record purchases.

Decline in XRP Price and Investor Reactions

XRP experienced a sharp decline after reaching its peak on January 6, losing 12% in value within just a week. However, during this wave of selling, an unusual interest in the fourth most valuable cryptocurrency in the market emerged. Determined investors, purchasing at an unprecedented rate not seen since September 7, preferred to increase their holdings despite the drop.

Long-Term Investors Took Action

After climbing to $2.38 at the beginning of the month, XRP pulled back to $2.06 and began to decline. However, this situation became an opportunity for long-term investors or determined buyers. Metrics indicating net position changes among HODLers monitoring wallet balances demonstrated a positive indicator during this period. This suggests that investors are inclined to buy at the dip.

Whale Movements and Market Imbalance

According to net position change data from HODLers, wallets added approximately 62 million XRP on January 9, and this amount nearly quadrupled in the following days. On January 10 and 11, despite the price drop, investors purchased 239 million XRP and 243 million XRP, respectively. This stands out as the strongest two-day buying streak since September 7.

However, the situation is balanced by the cautious behavior of larger whales. While smaller whales holding between 1 million and 10 million XRP have shown increased activity, large investors remain on the sidelines. Their overall balances reached from 3.52 billion to 3.53 billion XRP, recording only a 10 million XRP increase. This indicates that large whales are staying away from market movements.

The Future of XRP and Investment Strategies

The continued waiting of major players suggests that XRP is struggling to mount a strong recovery. The determination of investors to buy signals different expectations regarding the future of the market. Recent developments represent a significant turning point for XRP investors.

It should be noted that the information provided here is not investment advice.