Here’s why XRP prices may be set for a bounce soon

XRP

As a researcher with experience in analyzing cryptocurrency markets, I believe that Ripple (XRP) is showing signs of potential price growth based on recent accumulation trends and the behavior of large XRP holders. According to data from Santiment, XRP addresses holding between 1 million and 1 billion tokens have been increasing their balances since early June, which could indicate a bullish sentiment among major stakeholders.

Based on the analysis I’ve conducted as a crypto investor, if the trends AMBCrypto identified hold true, Ripple (XRP) could potentially see an increase in price. For quite some time now, this token has been stuck trading within a narrow band, fluctuating between $0.50 and $0.53.

According to Santiment’s data, XRP holders with balances ranging from 1 million to 1 billion have been accumulating more XRP since June 1st. For example, the group holding between 1 million and 10 million XRP accounted for 16.63% of the total supply on May 31st.

As of now, that figure has risen to nearly 17%; similarly, the segment comprising between 100 million and 1 billion experienced an increase, bringing their share to 6.07%.

Here’s why XRP prices may be set for a bounce soon

Investors are taking the bull by the horn

As significant investors in cryptocurrency, the decisions made by these accounts can sway the market price. Notably, this effect has been observed in the value of XRP.

Approximately a week ago, AMBCrypto announced that the XRP token might drop down to $0.50. Contrarily, XRP’s price has shown signs of heading towards $0.55 instead, with the potential for further growth.

To confirm the accuracy of this forecast, it’s essential to maintain the current trend. However, it’s also crucial to examine other facets of the XRP Ledger in depth. Doing so will help investors determine whether the upward trend is likely to persist or if a change may be on the horizon.

To provide some context, AMBCrypto examined the Realized Capitalization. An uptick in this indicator implies that coins bought at lower prices are being utilized. Conversely, a decline suggests that coins previously acquired at higher costs have been disposed of.

Is XRP about to go haywire?

Psychologically speaking, this measure can act as significant backing or opposition. As of now, there’s been a notable surge in XRP‘s 7-day Realized Capitalization. This surge indicates that recent XRP investors have yet to experience a realization loss.

In other words, the ongoing bull market may preferably extend its support for cryptocurrencies, including XRP. Yet, if the Realized Capital continues to expand, more tokens would be moved offline, potentially resulting in a boosted price for XRP.

Furthermore, the large one-day price fluctuation indicated that the value of the token could experience substantial changes. This was due to an elevated volatility level of $0.0052.

Here’s why XRP prices may be set for a bounce soon

If the demand to purchase XRP grows along with its rise in value, it may be possible for XRP to revisit the price point of $0.56 again. In an extremely optimistic market condition, the price might even reach as high as $0.62.

Read Ripple’s [XRP] Price Prediction 2024-2025

However, traders might need to keep an eye on the price action.

If a bearish trend takes over, the bullish outlook for XRP may no longer hold true. In such a scenario, the digital asset could either consolidate or experience a potential drop to $0.50, as previously suggested.

2024-06-05 11:03

Investors are taking the bull by the horn

Is XRP about to go haywire?

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