Long-held Ripple (XRP) tokens moved addresses during the intraday trading session on May 16.
Long-term XRP holders rarely move their tokens. So when they do, it signals a change in market trends.
Ripple traders make calculated moves
An on-chain assessment of XRP’s performance shows a notable spike in the “age spent” metric on May 16. On that day, the metric was valued at 222 billion.
This indicator tracks the movement of long-term held XRP tokens. It helps gauge the sentiment of long-term token holders. This group of investors rarely transfer their tokens. Therefore, when they transfer their tokens, the market trend often changes.
When XRP’s age metric spiked, many long-dormant tokens began to be replaced.
This could mean that long term holders of the token are selling their tokens, but that is not necessarily the case. It does not necessarily mean that long term holders are selling, it could mean a surge in overall trading volume.
In the case of XRP, the price increase confirms that the spike in the age of consumption was due to an increase in overall trading activity, rather than due to selling by long-term holders.
Ripple consumption age source Santiment
In fact, on May 16, the price of XRP rose above the 20-day exponential moving average (EMA) where it is currently trading.
When an asset price rises above this important moving average, its current value is higher than its average price over the past 20 days. This is considered a bullish sign.
Ripple price analysis. Source TradingView
As of press time, XRP is trading at $0.52.
XRP Price Prediction: Will the Rally Continue?
The XRP 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 the token’s buyers and sellers in the market.
Positive values like these mean that bullish forces are dominating the market. As of this writing, XRP’s Elder Ray Index remains positive at 0.0065.
Additionally, the altcoin’s Money Flow Index (MFI) is above the neutral 50 level of 56. This suggests that buying pressure from market participants is outweighing short selling pressure on the coin.
If the current market trend remains the same and accumulation increases, the price of XRP could move up to $0.53 and then $0.57.
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