Ripple fundamentals are strengthening despite recent price decline

• Ripple sales rose sharply through 2021
• Increasing number of daily active users despite low volume
• Rising demand from larger investors

Despite a rough year caused by the ongoing lawsuit against the Securities & Exchange Commission, Ripple managed to make significant progress not just in its sales but also in partnerships. So far this year net sales surged approximately 450% from $146.41 million to $806 million. The previous quarter saw the highest sales of $ 497 million, driven by On-Demand Liquidity (ODL). This functionality allows customers to instantly move money around the world at any time – even weekends and holidays – without the need for pre-funded accounts or cumbersome correspondent banking relationships that take days to settle, are costly and error-prone. 

Ripple sales rose sharply in 2021 mainly thanks to high demand for ODL services. Source: www.cryptelites.com

Elsewhere the number of daily active addresses (DAA) is on steady uptrend which indicates that the network continues to expand even despite the fact that volatility has not been impressive recently. Currently On-chain volume hovers slightly below $3.0 billion, while the 30-day average stands at $3.21 billion. A spike in this index could indicate the reentry of capital.

Number of new daily active addresses has been increasing recently, despite lower volume. Source: Santiment

Also, larger investors which own from 1 million to 10 million XRP increased the number of tokens they own from 2.76 billion to 3.32 billion. An increase of 18.10% indicates that institutional investors are accumulating tokens in anticipation of an increase in their market value in the future. While the fundamentals are improving, one needs to remember that a lot will depend on the settlement of the SEC dispute. 

Whales continue to accumulate XRP. Source: Santiment

Ripple, like the entire cryptocurrency market, has experienced strong declines in recent times, however is seems that buyers managed to halt declines around major support zone at $ 0.70, which coincides with 78.6% Fibonacci retracement of the last upward wave, lower limit of the 1: 1 structure and upward trendline. As long a s the price sits above, resumption of the upward move is possible. On the other hand, should the break lower occur, downward move may accelerate towards next support at $0.50. Source: xStation5