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- Dormant XRP tokens have been reactivated, providing improved liquidity and renewed investor confidence.
- The rising taker purchase rate reflects the growing dominance of the bulls in the XRP derivatives market.
On December 10, the price of Ripple (XRP) briefly fell below $2, sparking speculation that the extended upward trend may be losing steam.
However, a quick 8% bounce in the last 24 hours has reignited optimism.
Hidden indicators beyond the surface point to more room for XRP’s rally to grow, signaling that XRP’s bullish momentum is far from over. Here’s how you can drive your XRP higher:
Dormant XRP tokens are on the move.
XRP’s Average Dollar Investment Age (MDIA) has decreased sharply, indicating significant on-chain activity.
Historically low MDIA reflects the reactivation of previously dormant tokens and often suggests that investor confidence has been restored.
In contrast, a rise in MDIA signals stagnation. This is because coins held by long-term stakeholders will remain untouched, limiting their upside potential.
Source: Santiment
Currently, XRP’s MDIA has fallen to its lowest level since early November.
This downward movement means that long-inactive tokens are coming back into circulation, increasing liquidity and trading volume, which are important drivers for continued price momentum.
Recirculation of dormant assets usually coincides with bullish phases. That’s because new trading activity suggests both retailers and larger stakeholders are taking advantage of price movements.
The MDIA decline coupled with XRP’s rapid price rebound highlights increased market participation and strengthens the case for XRP’s bullish outlook.
If this trend continues, XRP could maintain its upward trajectory.
Buyer takes back control
Source: CryptoQuant
In addition to on-chain activity, the rate of taker purchases in the XRP derivatives market further strengthens the bullish outlook for XRP. This indicator measures the ratio of buy orders to total taker transactions.
Each time the ratio exceeds 0.5, it indicates an increasing bullish advantage, with buyers outpacing sellers.
Recent data from CryptoQuant shows that the taker buying ratio has surged to 0.55, reflecting a sharp increase in buying pressure.
Historically, these movements coincide with periods of sustained price gains as traders express high confidence in upward momentum.
Current numbers indicate a favorable environment, but investors should monitor them closely.
A sustained taker buy ratio above 0.5 could result in further profits, while a drop below this threshold could signal that optimism is waning and profit-taking may be triggered.
XRP price and volume analysis
On the 4-hour chart, the price of XRP briefly fell below the 20 and 50 EMAs on December 12, hinting at a possible correction. However, the rapid recovery of these indicators restored bullish sentiment.
The EMA now acts as dynamic support with XRP consolidating near $2.40. In particular, the recent decline in volume due to price stability suggests that selling pressure is reduced, which is advantageous to buyers in the short term.
Source: TradingView
A surge in trading volume coupled with continued price stability above the EMA could allow XRP to regain bullish momentum and target $2.90.
Read Ripple (XRP) Price Forecast for 2024-2025
If volume does not increase, there is a risk that the $2.30 support may move sideways or be retested.
The EMA correction and current recovery highlight buyers’ control, but continued volume growth remains important for the push toward the $3.50 level.