After the recent drop in the price of XRP related to political instability in South Korea, the token surprised everyone with its rapid recovery. As a result of the massive sale, the value of XRP fell from $2.60 to $2.13, but a day later it returned to $2.45, showing an increase of almost 9%.
Some experts confidently state that XRP will never fall below $2 again. Why are analysts so confident about the future of cryptocurrencies?
Reasons for Optimism for XRP
XRP, which is closely linked to Ripple Labs, is receiving support amid positive sentiment in the cryptocurrency market. Bitcoin continues to grow, which stimulates other altcoins, including XRP. Experts believe that the token can approach its historical maximum (ATH) due to the following factors:
The Average Age of the Dollar (MDIA) This indicator measures how long tokens remain inactive on the blockchain. The decrease in MDIA for XRP indicates that long-term holders have started actively trading the token. This increase in activity increases liquidity in the market and contributes to an increase in price.
Taker Buy Ratio Indicator
Data from CryptoQuant shows that the ratio of purchases to the total number of transactions in the derivatives market is 0.55. This signals a high level of consumer interest and the dominance of buyers in the market.
The Bulls Are Taking Control
At the time of publication, #XRP is trading at about $2.45, with a market capitalization of $139.3 billion. Technical indicators also confirm the uptrend:
10-day SMA: $2.42
100-day SMA: $2.37
RSI (Relative Strength Index): 52.27, indicating a balanced market.
The MACD signals possible further increases.
Current XRP Metrics
Rank in the market: #4
Number of holders: 2M
Price: $2.39 (+0.66% per day)
Market Capitalization: $136.63B (+0.20%)
Trading Volume (24 hours): $8.52B (+17.56%)
Fully Diluted Cost (FDV): $239.86B
Volume to Capitalization Ratio (Vol/Mkt Cap): 6.21%
Total output: 99.98B $XRP
Maximum output volume: 100B XRP
If customer interest persists, the price of XRP could reach $3.50 in the near future. However, if trading activity slows down, the token may fall back to the $2.13 mark. At the moment, the market is under the control of bulls, and the future of XRP looks promising.
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