3 Diverging Signals Show XRP Investors Holding Firm Despite Market Fear
In November, XRP investors face challenges as the token's price declines, but several positive indicators suggest underlying strength. Despite a drop from $3.50 to $2.20, XRP's market dominance rises from 3.8% to 4%, and withdrawing addresses surge, indicating long-term holding over selling. Additionally, XRP holders have increased by 8,000 despite the bearish trend. Positive developments, such as ETFs filings by Franklin Templeton and Grayscale Investments, and legal recognition of XRP in India, contribute to investor confidence as many view the price drop as an opportunity for accumulation.
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XRP Investors Face Challenges Amid Bearish Price Action
XRP investors are experiencing a tough period as their portfolios have shown minimal improvement in November. However, several data points highlight positive signals that contradict the token's bearish price action. These divergences suggest that XRP remains a compelling option for retail investors seeking to safeguard their assets during the unpredictable volatility of late 2025.
XRP Dominance Rises Despite Price Declines
A divergence occurs when two related indicators move oppositely, often revealing underlying dynamics. The first notable divergence lies between XRP’s price and its market dominance (XRP.D), which represents its share of the total crypto market capitalization.
Data from TradingView indicates that XRP's price has been forming lower lows throughout the past month, while XRP.D has trended upward, rising from 3.8% to 4%. This suggests that investors are shifting their focus to XRP, as many altcoins lose momentum.
A Q3 2025 report from Kaito Research ranked XRP as one of the top-performing assets alongside Ethereum (ETH), trailing only Bitcoin across six key metrics such as Volume, Liquidity, and Market Capitalization. According to investor Crypto Eri, "Bitcoin achieved a perfect 100/100 score, while ETH and XRP tied for second place with scores of 95."
Surge in Withdrawing Addresses Reflects Investor Commitment
The second divergence appears in on-chain data. While XRP’s price has dropped significantly—from above $3.50 in July to $2.20 in November—the number of withdrawing addresses surged.
CryptoQuant data reveals that the 30-day average of withdrawing addresses increased from under 1,000 to over 2,500. Instead of panicking and selling their tokens, investors are withdrawing their XRP from exchanges, signaling long-term commitment and reducing the circulating supply.
A report from BeInCrypto disclosed that 300 million XRP were withdrawn from Binance in the past month. Exchange reserves of XRP on Binance have continued to hit new lows, further emphasizing investor confidence despite the bearish market conditions.
Increasing XRP Holders Amid Price Decline
The third divergence indicates that XRP's price, while decreasing (from above $3 to $2.20), has coincided with an increasing number of holders, which has grown by over 8,000 accounts in just a month, according to CoinMarketCap.
Many investors perceive the price decline as an opportunity to accumulate XRP at better valuations. Recent developments may have further bolstered this sentiment: both Franklin Templeton and Grayscale Investments submitted amended filings for proposed XRP ETFs to the SEC. Additionally, the Madras High Court in India acknowledged XRP as a legal asset, granting it protection under criminal law.
Investor Confidence Despite Market Fear
These diverging signals demonstrate that many XRP investors remain optimistic in the face of broader market fear. While confidence alone does not ensure success, it highlights the importance of having a clear capital protection strategy during turbulent market conditions. Despite the bearish sentiment, XRP continues to display underlying strength that could position it favorably going forward.