Ripple
XRP is moving again: $1 price predictions to finally come true?
XRP might not fall below $0.70 this time around – here’s why.
- Holders preferred to keep their tokens despite the unimpressive price action.
- Technical analysis suggested that the support at $0.61 might prevent XRP from falling.
AMBCrypto’s assessment of the Ripple [XRP] network showed that the 90-day dormant circulation has hit the lowest point since this year started.
On the 12th of March, dormant circulation stood at 84.71 million.
However, press time data showed that this metric was 5.66 million. Dormant circulation gauges the number of “old age” tokens that are moving.
Sometimes, when these tokens are transferred, the participants sell them. Other times, they are sent to other wallets for improved security.
Oldies and newbies ignore exchanges
For XRP, the decline in the metric might be a good development for the price. At press time, XRP’s price was $0.62.
However, this was a massive fall from the value on the aforementioned date, when dormant circulation was high.
If we were to go by the events of the said date, then XRP’s price might not climb from this point. But that is not always the case. With decreasing dormancy, comes decreasing selling pressure.
As such, the price of the token might not nosedive in the short term. However, it is also necessary to analyze the price action from other angles.
That is one of the reasons AMBCrypto checked what was happening with the token on exchanges.
As of this writing, XRP’s exchange inflow was 549,000. The inflow is the number of tokens that have left non-exchange wallets to exchange addresses.
Therefore, it is likely that a chunk of these tokens were exchanged for other tokens or stablecoins.
On the other hand, the exchange outflow was higher at 2.42 million, indicating that more tokens were sent for self-custody. The difference in these metrics point to a possible upswing instead of a decline.
Source: Santiment
XRP bulls want to revisit $0.70
From a bullish point of view, the price of the Ripple native token might extend toward $0.70. However, traders need to be careful as it does not take long for sentiment to change.
If the sentiment changes, XRP’s price might feel the heat, and this could invalidate the forecast above. In addition, the technical perspective gave an idea of the token’s short-term prediction.
At press time, the Relative Strength Index (RSI) was above the neutral point. This indicated that bulls were above bears in determining the price action.
The 4-hour XRP/USD chart also revealed that bulls had formed support around $0.61.
How much are 1,10,100 XRPs worth today?
However, a resistance lay ahead at $0.64, suggesting that there could be a tussle. If the price breaks through this level, then XRP might climb toward $0.68. On the other hand, rejection might cause a decline in value.
Source: TradingView
Furthermore, the Commodity Channel Index (CCI) suggested that a significant decrease was unlikely. At press time, the CCI was above zero, indicating that XRP’s price action might continue to target the upside.
