- Many long-term XRP holders may have changed their addresses but may not participate in the sell bid.
- Short-term participants made some profits, but the token was still undervalued.
In less than two weeks, XRP’s spending age indicator has bounced back from major lows three times. The first time the metric jumped to 214.86 billion was on May 16th.
On May 20, it hit $539.79 billion, and on May 24, the indicator rose again, indicating a significant increase in token movement by long-term holders.
For those unfamiliar, Age Consumed tracks the amount of tokens that change addresses within a certain period of time. A spike in metrics means that a large number of tokens that were previously idle are being moved.
On the other hand, lower numbers indicate that long-term holders have kept most of their assets in the same wallet. The recent market surge may lead participants to assume that holders are planning to sell their XRP.
Source: Santiment
XRP trades between $0.50 and $0.55.
However, jumping to conclusions without evidence from other metrics may sound too hasty. Therefore, AMBCrypto assessed exchange inflows and outflows of the XRP Ledger.
According to data obtained from Santiment, the exchange inflow of XRP is 211,00. Exchange inflows measure the number of tokens transferred from external wallets to exchange addresses.
A surge in inflows suggests that most tokens may be sold. Moreover, at the time of reporting, the exchange outflow amounted to 208,000. This metric is the number of tokens transferred to non-custodial wallets. In most cases, this action means that the participants involved have no plans to sell any time soon.
The slight difference in flows suggests that the price of XRP may not be significantly affected by the surge in idle coin movement.
Source: Santiment
Holders must prepare fireworks
At the time of writing, the price of XRP was $0.53. This figure represents an increase of 2.67% over the past 7 days. On-chain indications suggest that XRP may not register a notable rally in the next few days.
However, if market conditions become too weak, the price may fall to the underlying support at $0.50. Conversely, in a very optimistic scenario, XRP could hit $0.55 on the charts.
Overall, near-term forecasts seemed to indicate that the token could remain in a narrow trading range. Meanwhile, the Market Value to Realized Value (MVRV) ratio shows that more XRP holders have been making profits recently.
At press time, the 30-day MVRV rate was 2.696%. This means that the average token holder accumulated over the last 30 days will receive a positive return if they sell.
Source: Santiment
This indicator also measures whether an asset is undervalued or overvalued. On the surface, XRP appears undervalued compared to its March performance.
Read Ripple (XRP) Price Forecast 2024-2025
Therefore, the token price may rise to $0.60 in the medium term. However, as mentioned earlier, the near-term outlook does not look optimistic as XRP could swing sideways.