See Ripple (XRP) tokens large-scale trading activity
Long-term Ripple (XRP) tokens moved addresses during the trading session on May 16.
Long-term holders of XRP do not move their tokens around. So when you do, it indicates the market trend.
Ripple traders make calculated moves
An on-chain XRP performance review showed a significant increase in the age consumption metric on May 16. On that day, the metric value was 222 billion.
This metric tracks the movement of XRP tokens held for a long time. It helps gauge the sentiment of the token's long-term holders. This group of investors do not move their tokens very often. Therefore, when they do, it usually follows a change in market trends.
As XRP's Age-Expenditure metric spirals, many tokens that have lain dormant for too long begin to change hands.
While this may mean that long-term holders of the token are selling their coins, this is not always the case. Sometimes, it refers to an increase in overall trading activity, not necessarily by long-term holders selling.
In the case of XRP, the rally in price proved that the increase in consumption was not due to a general increase in trading activity and long-term holders selling.
In fact, on May 16, XRP price rose above the 20-day Exponential Moving Average (EMA), where it is currently trading.
When an asset's price rises above this key moving average, the current price is higher than the average price over the past 20 days. It is considered as a symbol of anesthesia.
Read more: Everything you need to know about Ripple vs SEC
At press time, XRP is trading at $0.52.
XRP Price Prediction: Rally to Follow?
For the first time since May 8, XRP's Elder-Ray index posted a positive value on May 16. This indicator tracks the relationship between the strength of token buyers and sellers in the market.
If the value is positive like this, it means that bullish strength dominates the market. As of this writing, XRP's Elder-Ray index remains positive at 0.0065.
Additionally, the altcoin Money Flow Index (MFI) rested at 56, above the neutral 50 level.
If the current market trend continues and the accumulation level rises, the price of XRP may rise to $0.53 and then to $0.57.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if long-term holders of XRP start selling their tokens, it may put downward pressure and cause it to sell at the $0.48 level.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
