Here’s why XRP prices may be set for a bounce soon
With fewer realized losses, XRP is in a prime state to give holders something to cheer about.
- XRP holders, with 1 million to a billion tokens, started the month by accumulating more.
- The price could reach $0.56 as participants took more tokens off-chain.
If the signals AMBCrypto observed are anything to go by, Ripple [XRP] could be on its way to a higher price. For a long while, the token has been trading in a tight range between $0.50 and $0.53.
However, data shown by Santiment showed that XRP holders between 1 million and 1 billion have been adding to their balance since the 1st of June. For instance, the 1 million to 10 million cohort shared 16.63% of the supply on the 31st of May.
At press time, that percentage has increased to almost 17%. The 100 million to 1 billion group also had a similar increase as the balance went up to 6.07%.
Investors are taking the bull by the horn
As major stakeholders of the cryptocurrency, the action taken by these addresses influence the price. Interestingly, the impact has been reflecting on the value of XRP.
A few days ago, AMBCrypto reported that the token could fall to the $0.50. However, XRP has let the genie out of the bottle as the price seemed to be targeting an increase to $0.55.
To validate this prediction, accumulation needs to be sustained. But beyond that, it is important to analyze other aspects of the XRP Ledger. This would allow investors to know if the uptrend would continue or otherwise.
For this reason, AMBCrypto checked the Realized Cap. If the Realized Cap increases, it means that coins accumulated at cheaper prices are being spent. However, a decrease in the metric suggest that coins purchased at higher values have been let go.
Is XRP about to go haywire?
From a psychological perspective, the metric can serve as strong support or resistance. At press time, there has been a steep increase in XRP’s 7-day Realized Cap. This steep increase suggests new XRP holders are not hit by realized loss.
As such, the bull market might continue to be in favor of the cryptocurrency. However, if the Realized Cap continues to grow, it means that a larger amount of tokens are taken off-chain, and this could help the price of XRP close higher.
In addition, the one-day volatility signaled that the price of the token could swing significantly. This was because the reading of the volatility has increased to $0.0052.
If buying pressure increases alongside the jump, XRP could aim at revisiting $0.56. In a highly bullish scenario, the price could tap $0.62.
Read Ripple’s [XRP] Price Prediction 2024-2025
However, traders might need to keep an eye on the price action.
Should bearish dominance appear, the bullish prediction could be invalidated. If that is the case, XRP’s next move could be consolidation or a possible decline to $0.50 as mentioned in the previous article.
