- Dormant XRP tokens reactivated, boosting liquidity and fueling renewed investor confidence.
- Rising taker buy ratio reflects growing bullish dominance in XRP’s derivatives market.
On the 10th of December, Ripple’s [XRP] price briefly slipped below $2, fueling speculation that its extended uptrend might be running out of steam.
However, the swift 8% rebound over the past 24 hours has reignited optimism.
Beyond the surface, under-the-radar indicators point to XRP’s rally having more room to grow, signaling that its bullish momentum may be far from over. Here’s what could drive XRP higher.
Dormant XRP tokens are on the move
The Mean Dollar Invested Age (MDIA) for XRP has sharply declined, signaling significant on-chain activity.
Historically, a low MDIA reflects the reactivation of previously dormant tokens, often suggesting renewed investor confidence.
In contrast, a rising MDIA implies stagnation, as coins held by long-term stakeholders remain untouched, capping upside potential.
Source: Santiment
Currently, XRP’s MDIA has dropped to its lowest level since early November.
This downward shift indicates that long-inactive tokens are re-entering circulation, boosting liquidity and trading volumes — both critical drivers for sustained price momentum.
The recirculation of dormant assets typically coincides with bullish phases, as fresh trading activity suggests that both retail and larger stakeholders are capitalizing on price movements.
Combined with XRP’s swift price rebound, the falling MDIA underscores growing market participation and strengthens the case for XRP’s bullish outlook.
If this trend persists, XRP could maintain its upward trajectory.
Buyers regain control
Source: Cryptoquant
Beyond on-chain activity, the taker buy ratio in XRP’s derivatives market further reinforces its bullish outlook. This metric gauges the share of buy orders relative to total taker trades.
Whenever the ratio surpasses 0.5, it indicates increasing bullish dominance, as buyers outpace sellers.
Recent data from CryptoQuant showed that the taker buy ratio had surged to 0.55, reflecting a sharp rise in buying pressure.
Historically, such movements align with periods of sustained price gains, as traders exhibit heightened confidence in upward momentum.
While the current reading indicates a favorable environment, investors should monitor this closely.
A sustained taker buy ratio above 0.5 could fuel further gains, whereas a drop below this threshold might signal waning optimism and prompt profit-taking.
XRP price and volume analysis
On the 4-hour chart, XRP’s price briefly slipped below the 20 and 50 EMAs on the 12th of December, hinting at a potential correction. However, the swift recovery above these indicators has restored bullish sentiment.
The EMAs now act as dynamic support, with XRP consolidating near $2.40. Notably, the low volume accompanying recent price stabilization suggests reduced selling pressure, favoring buyers in the short term.
Source: TradingView
Should trading volume spike alongside continued price stability above the EMAs, XRP could reclaim its bullish momentum and target $2.90.
Read Ripple’s [XRP] Price Prediction 2024–2025
If volume fails to build, it risks sideways movement or a retest of the $2.30 support.
The EMA alignment and current recovery underscore buyers’ control, but sustained volume growth remains critical for a push toward the $3.50 mark.
