- Many long-term XRP holders changed addresses, but it may not be in a bid to sell.
Short-term participants made mild gains, however, the token remained undervalued
As a seasoned crypto investor with experience in following XRP‘s market trends, I believe that the recent surge in Age Consumed metric should be taken with a grain of salt. While it’s true that long-term holders have been moving their tokens, it doesn’t necessarily mean they are planning to sell. In fact, this could be a sign of accumulation or simply transferring funds between wallets.
Within a fortnight, XRP‘s Age Consumed metric has bounced back from significant depths on three occasions. The initial recovery occurred on May 16, reaching a peak of 214.86 billion.
On the 20th of May, the figure exceeded 539.79 billion, and on the 24th, there was a further increase in this metric, suggesting substantial token transfers from long-term investors.
For those less familiar, Age Consumed measures the frequency with which cryptocurrency tokens switch hands during a given timeframe. A significant increase in this metric indicates that a substantial number of previously inactive tokens are now being actively traded.
From a research perspective, it appears that a large proportion of XRP holders have not moved their assets from their original wallets during the latest market upswing. This could be indicative of a long-term holding strategy among these participants. Contrary to popular belief, they might not be intending to sell their XRP.
XRP to trade between $0.50 and $0.55
Instead of jumping to conclusions without supporting evidence from other indicators, AMBCrypto chose to examine the exchange flows and movements on the XRP Ledger as an alternative approach.
Based on information from Santiment, there were approximately 211,000 XRP tokens transferred from outside wallets to exchange addresses as indicated by the exchange inflow data.
An increase in inflows indicates that a large number of tokens are likely being put up for sale. In contrast, the exchange outflows amounting to 208,000 tokens at present signify tokens being transferred to external wallets. Typically, this movement suggests that the token holders are not planning to sell in the near future.
The subtle variation in coin flows implies that XRP‘s price may not experience significant fluctuations due to the surge in idle coins being transferred.
Holders should prepare for fireworks
As a crypto investor, I’m observing that at the present moment, XRP is priced at $0.53. This figure signifies a 2.67% increase in value over the past week. However, based on the current on-chain signals, it seems unlikely that XRP will experience significant price growth in the near term.
In less favorable market conditions, the price could potentially drop down to $0.50 as a form of support for XRP. On the other hand, if the market is particularly bullish, XRP may reach a price of $0.55 according to chart predictions.
From my perspective as an analyst, the initial projection suggested that the token would continue to trade within a narrow band in the near term. However, I noticed an intriguing development when examining the Market Value to Realized Value (MVRV) ratio for XRP. This indicator signaled that a greater number of XRP holders have recently moved into profitable territory.
As of now, the 30-day MVRV ratio stands at 2.696%. Translated, this signifies that the typical crypto investor who bought within the previous 30 days may potentially realize profits upon selling their tokens.
Moreover, the metric indicates whether an asset is underpriced or overpriced. Based on appearances, XRP appeared to be underpriced relative to its march performance.
Read Ripple’s [XRP] Price Prediction 2024-2025
In the medium term, the value of the token could potentially rise to around 60 cents. On the other hand, the near-term perspective is less optimistic as XRP may move horizontally, according to earlier analysis.
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2024-05-25 18:16