Ripple saw a massive spike in spending age on May 16th.
This indicates that long-held XRP tokens are starting to change addresses.
There are no signs yet that long-term holders are selling their holdings.
Long-held Ripple (XRP) tokens moved addresses during the intraday trading session on May 16.
XRP long-term holders rarely move their tokens. So when they do, it signals a shift in market trends.
Ripple traders make calculated moves
An on-chain assessment of XRP’s performance shows a significant spike in its spending age indicator on May 16. On that day, the indicator’s value was 222 billion.
This indicator tracks the movement of long-term held XRP tokens. It helps gauge the sentiment of long-term holders of the token. This group of investors rarely moves their tokens. Therefore, when they do, it often accompanies a shift in market trends.
When XRP’s Age Consumed metric spikes, many long-dormant tokens begin changing hands.
While this could mean that long-term holders of a token are selling their tokens, this is not always the case. Sometimes, it means a surge in overall trading activity that is not necessarily selling from long-term holders.
In XRP’s case, the rebound in its price confirms that the surge in spending age is due to an overall increase in trading activity, rather than because long-term holders are selling.
The ripple age of consumption. Source: Santiment
In fact, on May 16, XRP’s price climbed above its 20-day exponential moving average (EMA), which is where it is currently trading.
When an asset’s price rebounds above this key moving average, its current value exceeds its average price over the past 20 days. This is considered a bullish sign.
Welcome to join us - how to layout, what varieties to layout, how to maximize the profit strategy, see the homepage click here 👉Follow the homepage
Ripple price analysis. Source: TradingView
At press time, XRP is trading at $0.52.
XRP Price Prediction: The Rally Next?
XRP’s Elder-Ray Index recorded positive values on May 16 for the first time since May 8. The indicator tracks the relationship between the strength of buyers and sellers of the token in the market.
When its value is positive like this, it means that bullish forces are dominating the market. At the time of writing, XRP’s Elder-Ray Index remains at 0.0065.
Furthermore, the Money Flow Index (MFI) for altcoins is above the neutral level of 50 at 56. This suggests that buying pressure from market participants is outweighing coin selling.
If the current market trend continues and accumulation climbs, the price of XRP could rally to $0.53 and then $0.57.
Ripple price analysis. Source: TradingView
However, if long-term holders of XRP start selling their tokens, it could create downward pressure and cause it to trade at $0.48.
