Confidence in the token is rising, but XRP may keep trading below a certain bullish target.
- The number of XRP holders increased by 100,000 within the first 10 days of June. Despite the growth, XRP might keep swinging between $0.48 and $0.52.
Things might have changed for Ripple [XRP] in ways most market participants could find surprising. On the last day of May, the total number of XRP holders was 5.2 million.
However, within the first week of June, the number has increased by another 100,000. This implies growing demand for the token despite the underwhelming price action.
At press time, XRP’s price was $0.50, representing a 3.65% decrease in the last seven days. Considering the recent growth, it is likely that the cryptocurrency could be in line for a hike.
Source: Santiment
From doubt to belief
Recently, several analyses have shown that XRP could be heading for a decrease. But if the current state of things is anything to by, the bearish prediction could be invalidated.
While this opinion might be valid, it is important to analyze other metrics. One of the metrics considered was the Mean Dollar Invested Age (MDIA).
The MDIA shows the average age all XRP holders have held their coins. When the metric decreases, it means an increase in transactions activity. In most cases, this causes the price to decrease.
However, a rising line of the MDIA indicates that long-term holders are refraining from selling. For XRP, the 90-day MDIA was down to 1812 on the 1st of June.
But as of this writing, the figures had approached 2000, indicating that most holders tilted toward the latter. Going forward, if this number rises, the price might follow, and a target of $0.55 could be feasible.
Another metric supporting the bullish prediction was the circulation. Circulation shows the number of token engaged in transaction within a given period.
At press time, the one-day XRP circulation was down to 228.53 million. An increase in the metric would have suggested a possible increase in selling pressure.
Source: Santiment
Will XRP sales continue to fall?
Therefore, the decline in circulation meant that most holders are not realizing profits or settling for losses. Should this continue, the value of XRP might experience a notable rally.
Despite the bullish bias, the Weighted Sentiment was down to -1.186. Weighted Sentiment measures the positive or negative commentary about an asset.
When the metric is positive, it means that most comments online are positive. However, a negative sentiment, like it was in XRP’s case implied that market participants are bearish on the token.
Should this perception linger, XRP might find it hard to sustain demand.
Source: Santiment
Realistic or not, here’s XRP’s market cap in BTC terms
If this is the case, XRP might move sideways, and the price could move between $0.48 and a ceiling of $0.52.
Meanwhile, Network Growth on the XRP Ledger have remained flat. This indicates that new addresses on the network are not participating in transaction.
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