However, this uptrend could be interrupted for a while as the belief of XRP holders may be currently shaken, which could cause the price to drop.
Are Ripple Investors Skeptical?
The price of XRP, like any other token or coin in the crypto market, tends to be heavily influenced by the actions of its long-term holders (LTH). Their accumulation tends to increase the price, while sales lead to significant decreases.
In the case of Ripple’s native token, these long-term investors are used to moving their assets every month, which have appreciated at the moment. However, the consumption age indicator, which multiplies the total volume moved by the time since the last movement, has seen jumps in recent days.
These spikes, breaking from the usual pattern, indicate that XRP “LTH” is shifting its holdings in the face of these uncertain market conditions. This could be their attempt to sell their securities to secure profits or offset losses.
Either way, the altcoin could then face a bearish impact.
In addition, the total share of XRP holders has also decreased significantly. The total number of investors transacting on the network actually began to decline in December 2023.
This decline has continued until now, which is a negative sign for the cryptocurrency.
Read more: How to buy XRP and everything you need to know
Thus, a decrease in active addresses shows that participation is decreasing, which represents a bearish trend in the price of XRP.
XRP Prediction: Return to Key Support
Currently trading at $0.53, XRP managed to secure the 23.6% Fibonacci retracement level as support. This level is also known as the bottom of the bear market support; thus maintaining the price above the latter in bear market conditions prevents excessive decline.
Marked at $0.51, this level is therefore a likely target for the altcoin. The above factors, if they start to decline, could thus cause the price of XRP to fall to this level. Finally, a loss of this level would also correspond to a loss of uptrend line support, sending the altcoin to $0.50 or even lower.
More information: Ripple (XRP) Prediction 2024/2025/2030
However, if the broader market indices remain in favor of a gradual uptrend, the asset price could eventually avoid a decline and continue to rise. The bearish thesis would then be canceled and the altcoin could rise to $0.56.
Moral of the story: XRP is like melting chocolate, you shouldn’t rush it.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with a professional before making any financial decision.
