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XRP is not collapsing even amidst a sharp decline. As a result, an analysis has been released stating that the strong will of individual investors to hold, rather than institutional buying, has significantly influenced price maintenance.
According to The Crypto Basic, a cryptocurrency specialized media outlet, on April 28 (local time), on-chain data analysis revealed that individual investors are supporting 40-60% of XRP's price floor. Currently, 50-55% of the total XRP supply is stored in personal wallets or exchange wallets. In contrast, the proportion held by institutional investors and spot ETFs is only 1-2% of the total. These figures prove that the main agents of price defense are millions of individual holders, not large capital.
The background for the sustained price floor is the strong refusal of existing holders to sell, rather than aggressive additional buying. The current number of active XRP wallets ranges from 7 million to 8 million. Many of these are long-term investors who have held their assets for years without selling. Their firm conviction is effectively locking up the supply circulating in the market. Even if the price drops, the supply does not flood the market, strengthening downside rigidity.
On the other hand, 60-70% of actual daily price fluctuations are driven by market makers. If individual investors play a role in shoring up the price floor, it means that the market's movements themselves are determined by professional traders. Despite the overwhelming proportion of individual holders, short-term price fluctuations are clearly dictated by the trading strategies of institutions and professional firms.
Lawyer Bill Morgan offered a different perspective on the factors determining XRP's price. Morgan emphasized, "The most overwhelming factor explaining XRP's price movements is still the price trend of Bitcoin (BTC)." While individual investors support the price floor, an analysis suggests that actual upward rallies or downward trends closely follow the movements of Bitcoin, the leading cryptocurrency. The general coupling phenomenon in the virtual asset market is also observed in XRP without exception.
Ultimately, the XRP market forms a unique dual structure where individuals support the downside and Bitcoin leads the upside. The current supply structure, with a low proportion of institutional funds, actually acts as a safeguard, reducing the possibility of a rapid sell-off. Investors are paying attention to what synergy the strong cohesion of individual holders will create when institutional funds eventually flow in. Based on a solid foundation of individual investors, XRP is preparing for a new leap forward.
*Disclaimer: This article is for investment reference purposes, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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