Ripple extends losses for a second day as investors monitor geopolitical developments

XRP fell for a second consecutive session on Tuesday, slipping about 0.4% to trade near $1.07 as of 19:59 GMT on CoinMarketCap, extending its downward trend in line with the broader weakness across the cryptocurrency market.

Despite the price pressure, on-chain data suggests investor activity is picking up, potentially providing support for the token if the trend continues.

Political uncertainty

US President Donald Trump announced on Sunday that he had postponed new military strikes against Iran while awaiting the outcome of talks aimed at ending the conflict and resolving disputes over control of the Strait of Hormuz.

However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei rejected Trump's claims on Monday, insisting there were no negotiations with the United States and no meetings scheduled between the two sides.

The Strait of Hormuz remains one of the main sticking points in the dispute. Before the conflict erupted in late February, roughly 20% of global oil and liquefied natural gas supplies passed through the strategic waterway each day.

Whale accumulation and network activity

Data from the XRP Ledger showed a notable increase in holdings among large wallets, with addresses holding between 100 million and 1 billion XRP rising to 11.98% of the total circulating supply, up from 10.66% last Saturday.

Analysts believe that continued accumulation by large investors could help absorb selling pressure and support a recovery in XRP over the coming period.

Network activity also showed signs of improvement, with roughly 17,000 active addresses sending or receiving transactions on Tuesday after peaking at nearly 37,000 the previous day.

The data further showed that the number of active addresses had fallen to around 20,000 on July 20, suggesting that network activity has improved as XRP approaches the key support level at $1.00.