Long-held Ripple (XRP) tokens moved addresses during the intraday trading session on May 16.
XRP long-term holders rarely move their tokens around. So when they do, it hints at a shift in market trends.
Ripple Traders Make Calculated Moves
An on-chain assessment of XRP’s performance revealed a significant spike in its Age Consumed metric on May 16. On that day, the metric’s value was 222 billion.
This metric tracks the movement of XRP tokens held for a long period of time. It helps gauge the sentiment of the token’s long-term holders. This cohort of investors rarely moves their tokens around. Therefore, when they do, it is often followed by a shift in market trends.
When XRP’s Age Consumed metric spikes, many tokens left dormant for a long time are beginning to change hands.
While this may mean that the token’s long-term holders are selling their coins, this is not always the case. Sometimes, it connotes a surge in overall trading activity, not necessarily from long-term holders selling.
In XRP’s case, the rally in its price confirmed that the surge in Age Consumed was due to an overall increase in trading activity and not because long-term holders were selling.
In fact, on May 16, XRP’s price climbed above its 20-day Exponential Moving Average (EMA), which is where it currently trades.
When an asset’s price rallies above this key moving average, its current value surpasses its average price in the past 20 days. It is regarded as a bullish signal.
Read More: Everything You Need To Know About Ripple vs SEC
At press time, XRP trades at $0.52.
XRP Price Prediction: A 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 the token’s buyers and sellers in the market.
When its value is positive like this, it means that bull strength dominates the market. As of this writing, XRP’s Elder-Ray Index remained positive at 0.0065.
Further, the altcoin’s Money Flow Index (MFI) rested above its neutral 50 level at 56. This showed that buying pressure exceeded token sell-offs among market participants.
If the current market trend is sustained and accumulation climbs, XRP’s price might rally toward $0.53 and then $0.57.
Read More: Ripple (XRP) Price Prediction 2024/2025/2030
However, if XRP’s long-term holders begin to sell their tokens, it may put downward pressure and cause it to trade at the $0.48 level.
The post Ripple (XRP) Awakens: Long-Held Tokens Changing Hands appeared first on BeInCrypto.
