Can XRP Price Avoid Another Dip as Bulls Regain Control?
On December 10, the price of Ripple (XRP) temporarily fell below $2, sparking speculation that its long-term upward trend may be over. However, the bearish concerns were short-lived. XRP has rebounded strongly, rising 8% in the past 24 hours.
Interestingly, some under-the-radar indicators suggest that XRP may still have room to grow this year. Here’s how.
Ripple stakeholders put more tokens into circulation
Mean USD Investment Age (MDIA) is an on-chain metric that indicates The price of XRP may continue to move higher. MDIA represents the average age of all tokens on the blockchain, weighted by their purchase value.
MDIA’s rise shows that the token, typically held by major stakeholders, remains stagnant. Historically, this inactivity has made it difficult for altcoin prices to gain momentum. Currently, however, XRP’s MDIA has dropped to significantly lower levels. This metric reflects the median age of traded tokens, marking the recirculation of previously dormant assets.
Unlike high MDIA, which means stagnation, low MDIA is considered a bullish signal. Reduction indicates Dormant XRP Token It has been restored to circulation, boosting trading activity and liquidity.
In addition to MDIA, the taker-to-buy ratio also suggests that XRP price has the potential to rise further. This ratio measures Pay the bill Compared to the total trading volume in the derivatives market.
A taker-to-buy ratio above 0.5 reflects Bullish sentiment continues to build, Indicates that the buyer is gaining control. According to data from CryptoQuant, the indicator has climbed to 0.55, highlighting a significant increase in buying pressure around XRP.
If this trend continues, it could signal strong optimism in the market, potentially pushing XRP to new price levels in the coming sessions. However, a break below this threshold would signal bearish sentiment and warrant caution.
XRP Price Prediction: Bulls are in control again
On the 4-hour chart, The price of XRP briefly fell December 12 was below the 20 and 50 exponential moving averages (EMA). EMA is a technical indicator that measures trend.
When prices are below these indicators, it usually signals a bearish trend, while above these indicators, it signals bullish momentum. The recent downturn suggests XRP may be in for a further correction.
However, as of now, the bulls have regained control, pushing the price back above these lines. This shift signals a return of bullish momentum and XRP could climb to $2.90 in the short term.
If buying pressure intensifies, the price could rise to $3.50. On the other hand, if the number of dormant tokens flow into circulation dropthis may not happen and the coin may drop to $1.93.
Disclaimer
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