XRP bounces 8% after drop below $2: Is the rally back on?
The post XRP bounces 8% after drop below $2: Is the rally back on? appeared on BitcoinEthereumNews.com.
contributor Posted: December 16, 2024 Dormant XRP tokens reactivated, boosting liquidity and fueling renewed investor confidence. Rising taker buy ratio reflects growing bullish dominance in XRP’s derivatives market. On the 10th of December, Ripple’s [XRP] price briefly slipped below $2, fueling speculation that its extended uptrend might be running out of steam. However, the swift 8% rebound over the past 24 hours has reignited optimism. Beyond the surface, under-the-radar indicators point to XRP’s rally having more room to grow, signaling that its bullish momentum may be far from over. Here’s what could drive XRP higher. Dormant XRP tokens are on the move The Mean Dollar Invested Age (MDIA) for XRP has sharply declined, signaling significant on-chain activity. Historically, a low MDIA reflects the reactivation of previously dormant tokens, often suggesting renewed investor confidence. In contrast, a rising MDIA implies stagnation, as coins held by long-term stakeholders remain untouched, capping upside potential. Source: Santiment Currently, XRP’s MDIA has dropped to its lowest level since early November. This downward shift indicates that long-inactive tokens are re-entering circulation, boosting liquidity and trading volumes — both critical drivers for sustained price momentum. The recirculation of dormant assets typically coincides with bullish phases, as fresh trading activity suggests that both retail and larger stakeholders are capitalizing on price movements. Combined with XRP’s swift price rebound, the falling MDIA underscores growing market participation and strengthens the case for XRP’s bullish outlook. If this trend persists, XRP could maintain its upward trajectory. Buyers regain control Source: Cryptoquant Beyond on-chain activity, the taker buy ratio in XRP’s derivatives market further reinforces its bullish outlook. This metric gauges the share of buy orders relative to total taker trades. Whenever the ratio surpasses 0.5, it indicates increasing bullish dominance, as buyers outpace sellers. Recent data from CryptoQuant showed that the…
Filed under: News - @ December 15, 2024 10:05 pm