XRP appears to be carving out a foundation for a potential recovery, fueled by a convergence of robust on-chain metrics. Investor confidence is showing early signs of resurgence, marked by strategic accumulation and a significant market reset, signaling a healthier environment for the digital asset.
Deepening Investor Conviction and Market Cleansing
A remarkable surge in XRP's large holder base underscores a growing long-term conviction among investors. The number of wallets holding at least 10,000 tokens has reached an all-time high of 317.5K, indicating steady accumulation by whales who often position themselves during undervalued phases. This strategic buying suggests a belief that XRP’s recent market reset has fortified its long-term viability. Complementing this, a dramatic collapse in Open Interest, shedding nearly $2 billion, has effectively flushed out excessive leverage and speculative positions from the market. This reset, while potentially painful in the short term, creates a cleaner, more stable environment conducive to attracting fresh capital inflows.
Shifting Sentiment and Recovery Potential
Early signs of cautious optimism are returning to the XRP market, with its Weighted Sentiment flipping positive after an extended period of negativity. This improving sentiment aligns perfectly with the sustained increase in large-holder activity, reflecting a gradual yet steady recovery in overall market conviction. Historically, such sentiment reversals have often preceded periods of price stabilization and eventual recovery. While XRP continues to navigate a descending price channel, the convergence of strong whale accumulation, a comprehensive leverage reset, and improving sentiment paints a cautiously bullish picture. The token's ability to translate these positive on-chain signals into sustained buying strength will be critical in breaking its current downtrend and achieving a lasting recovery.
