- XRP’s price surge can be attributed to the growing whale accumulation, who now own 85% of the total supply.
Open Interest reached a three-month high, suggesting heightened speculative activity.
As a seasoned crypto investor with several years of experience under my belt, I’ve learned to pay close attention to on-chain data and market trends when analyzing potential price movements for various cryptocurrencies. And based on recent developments regarding Ripple (XRP), I believe we’re witnessing an intriguing shift in the token’s price dynamics.
Over the past several days, XRP (Ripple) has experienced significant growth, with its value reaching a new high of $0.60. This represents a substantial gain of 36.45% over the preceding week.
It came as a shock that AMBCrypto identified the causes behind the price surge. Based on information from on-chain analytics platform Santiment, there was a noticeable increase in the number of XRP holders with more than 100,000 coins.
Go big or go home
As an analyst, I can explain that this specific group of influential investors, often referred to as “whales” and “sharks,” holds substantial impact over asset prices. In simpler terms, when their holdings decrease, it’s highly probable that the price of a token will experience a significant downturn.
As a result, the rise in accumulation led to heightened demand for XRP, fueling its price surge.
The surge uncovered the fact that sharks and whales collectively control 85% of the entire inventory, marking a peak during the past 11-month period.
If the number of whale investments in the token keeps increasing, it’s plausible that the token’s value could return to $0.63 or even rise further.
As a crypto investor, I believe another reason why the token’s price might surge up to that level is due to the upcoming launch of the cryptocurrency’s reference rates and real-time indices on July 29th. This event could potentially attract more investors and increase market liquidity, leading to an uptick in the token’s value.
As an analyst, I’d like to point out that these indices aren’t something you can buy or sell as a futures contract. Rather, they serve as valuable resources, offering transparent and accurate pricing information related to the underlying assets.
XRP stagnant coins are now in motion
In the realm of crypto derivative markets, the Open Interest for XRP stood at a noteworthy $233.85 million. This represented a new peak since the 12th of April.
The term “OI” represents the aggregate value of ongoing contracts in a particular market. An uptick in OI signifies heightened speculation surrounding a specific token, as well as an influx of resources being dedicated to these contracts.
If the decrease lessens, it means something different. Regarding pricing, an ongoing increase in open interest for XRP might amplify its price rise. Consequently, the cryptocurrency’s value could potentially hit $0.63 as previously stated.
Furthermore, there has been a significant increase in the average dollar amount invested over the past 90 days, which is represented by the Mean Dollar Invested Age (MDIA) metric.
As a cryptocurrency analyst, I would describe this metric as follows: This measure represents the mean amount of US dollars invested in the total market capitalization of a specific cryptocurrency.
Previously, during bull markets, an uptrend in the Maker DAO (MDIA) indicator has indicated that large investors were transferring their dormant XRP holdings back into circulation. If this trend persists, it could potentially boost XRP’s price.
Read Ripple’s [XRP] Price Prediction 2024-2025
Based on this assessment, the price of the token could potentially rise further, as suggested in AMBCrypto’s prior piece.
Beyond reaching $0.63, XRP could have a chance of returning to the $0.72 mark – a level it touched back in March.
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2024-07-17 15:03