Key Takeaways
Is XRP showing resilience compared to other top caps?
While XRP has pulled back 12%, it’s outperforming Ethereum and shows signs of decoupling thanks to fresh XRPL inflows.
Is the current capital on XRPL long-term or opportunistic?
TVL has dropped, wallets are skewed long, and funding rates indicate bullish positioning, but commitment remains shallow.
The market has shifted to a risk-off stance, and top caps are breaking their support levels.
Ripple [XRP] is no exception. With an 11.8% weekly drawdown, XRP has lost the $2.6 floor. By contrast, Ethereum [ETH] has taken an even steeper 14% hit. So, in relative terms, XRP isn’t the worst performer this month.
However, the unwind isn’t done yet.
As short-term volatility keeps bleeding capital “across” the board, Q4 performance will hinge on who can actually hold long-term conviction through the chop. So, is Ripple leading this divergence, as well?
XRPL wallet growth surges to its strongest level since Q1
XRP and the XRP Ledger (XRPL) are beginning to show signs of decoupling.
While XRP has dropped 12% over the past week, mirroring the broader market downturn, XRPL continues to attract new capital.
If this divergence persists, it could support a recovery in XRP’s price and potentially position it ahead of other Layer 1 networks.
Backing this up, Santiment data highlights steady on-chain traction on the XRP Ledger. Since the start of November, roughly 21,595 new wallets have spun up on XRPL, marking its highest reading since February.
Source: Santiment
In short, XRP’s relative strength against other top caps isn’t random.
Rather, it’s being underpinned by solid on-chain fundamentals. For example, XRPL’s 7-day stablecoin market cap spiked 44%, adding $94 million in liquidity and driving the total to a new ATH of $307 million.
Layer in the surge of new wallets, and it points to renewed accumulation, which could stabilize XRP’s support zones and set the stage for a potential trend reversal. The question is, which cohort is driving this accumulation?
Are new HOLDers chasing quick gains or building positions?
As mentioned earlier, conviction is key during this chop.
That said, Ripple appears to be bucking the trend. On the DeFi front, XRPL’s Total Value Locked (TVL) has dropped 6% to $76 million, returning to levels last seen in early July.
In short, long-term investor commitment remains weak.
Put differently, much of the current inflow appears opportunistic, with traders rotating capital for short-term gains rather than locking XRP for sustained holding. In that case, traders are currently skewed long.
Source: Coinglass
On the shorter timeframe, XRP’s funding rates have flipped green.
Technically, this means longs are paying shorts, signaling that traders are betting on upside. Meanwhile, high green funding highlights the risk of crowded longs, which could lead to a squeeze if momentum reverses.
Notably, wallet counts on XRPL have slipped back to 5,544, reinforcing weak long-term positioning. Given this backdrop, if traders stay skewed long, XRP could get caught in a loop, making a reclaim of $3 a tough ask.
