XRP on-chain metrics resemble 2022 bear market pattern, analysis finds

An analysis suggests that XRP's on-chain indicators are showing trends similar to those observed before the 2022 bear market. According to Coindesk, citing Glassnode, investors active within the last month have been accumulating XRP at a lower average price than those who invested six to 12 months ago. This has resulted in a situation where recent buyers are in profit while long-term holders are at a loss. Glassnode explained that if a rebound is slow to materialize amid this asymmetric profit structure, it could trigger selling from existing holders. A similar pattern was reportedly seen in February 2022, when XRP was trading at $0.78 before declining to around $0.30 during the year. The analysis further noted that XRP is currently stagnating around the $2 mark, a price level that consistently affects investor sentiment. Since the middle of last year, each retest of this level has led to weekly losses of between $500 million and $1.2 billion, suggesting many investors chose to sell rather than increase their positions. While there is no guarantee of a sharp decline like the one in 2022, Glassnode concluded that as the disparity between holders' average costs widens, selling pressure from long-term investors will inevitably grow.