"Ants Stronger Than Institutions"...Retail Investors Support 60% of XRP Price

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XRP is not collapsing even in 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 cryptocurrency specialized media The Crypto Basic on April 28 (local time), on-chain data analysis shows that individual investors are supporting 40-60% of the XRP 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. This figure proves that the main force defending the price is not large capital but millions of individual holders.

The background to the price floor being maintained is not active additional buying, but rather the strong refusal of existing holders to sell. 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 several years without selling. Their firm conviction effectively locks up the circulating supply in the market. Even if the price falls, the supply does not flood the market, strengthening downward rigidity.

On the other hand, 60% to 70% of actual daily price fluctuations are led by market makers. This means that while individual investors play a role in establishing the price floor, the market's movement itself is determined by professional traders. Despite the overwhelming proportion of individual holders, short-term price fluctuations are clearly swayed by the trading strategies of institutions and specialized firms.

Lawyer Bill Morgan presented a unique perspective on the factors determining XRP's price. Morgan emphasized, "The most overwhelming factor explaining XRP price movements is still the price trend of Bitcoin (BTC)." While individual investors support the price floor, the actual upward rallies or downward trends are analyzed to closely follow the movements of Bitcoin, the market leader. The overall coupling phenomenon in the virtual asset market is also evident 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, acts as a safety net that actually reduces the possibility of a sharp sell-off. Investors are paying attention to what synergy the strong cohesion of individual holders will create when institutional funds eventually flow in. XRP is preparing for a new leap forward based on a solid foundation of individual investors.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*