- Many long-term XRP holders changed addresses, but it may not be in a bid to sell.
- Short-term participants made mild gains, however, the token remained undervalued
In less than two weeks, XRP’s Age Consumed metric has resurrected from major lows three times. The first time was on 16 May when the metric spiked to 214.86 billion.
On 20 May, it went overboard and hit 539.79 billion, and on 24 May, the metric rose again, indicating significant movement of tokens by long-term holders.
For those unfamiliar, Age Consumed tracks the amount of tokens changing addresses within a certain period. When the metric spikes, it means that a large number of previously idle tokens are on the move.
On the other hand, a low reading suggests that long-term holders have kept most of their assets in the same wallet. On the back of the recent market surge, participants might assume that holders are planning to sell their XRP.
Source: Santiment
XRP to trade between $0.50 and $0.55
However, making conclusions without proof from other metrics might sound too hasty. As such, AMBCrypto evaluated the exchange inflows and outflows on the XRP Ledger.
According to data obtained from Santiment, XRP’s exchange inflows were 211,00. Exchange inflows measure the number of tokens sent from external wallets to exchange addresses.
A surge in the inflows suggests that most tokens might be up for sale. Furthermore, the exchange outflows at press time were 208,000. This metric is the number of tokens sent out to non-custodial wallets. On most occasions, this action implies that the participants involved do not plan to sell soon.
The mild difference in the flows indicates that XRP’s price might not be significantly affected by the spike in the movement of idle coins.
Source: Santiment
Holders should prepare for fireworks
At the time of writing, XRP’s price was $0.53. This value represented a 2.67% hike in the last 7 days. Going by the indications on-chain, XRP might not register a notable uptick in the coming days.
However, if the market condition gets too bearish, the price might slide to the $0.50 underlying support. Conversely, in a highly bullish scenario, XRP might hit $0.55 on the charts.
All in all, the short-term forecast seemed to indicate that the token might remain in a tight trading range. In the meantime, the Market Value to Realized Value (MVRV) ratio showed that more XRP holders have become profitable of late.
At press time, the 30-day MVRV ratio was 2.696%. This means that the average token holder who accumulated in the last 30 days might get positive returns if they sold.
Source: Santiment
In addition, the metric measures if an asset is undervalued or overvalued. By the look of things, XRP seemed to be undervalued, compared to its performance in March.
Read Ripple’s [XRP] Price Prediction 2024-2025
Hence, the token’s price might climb toward $0.60 in the mid-term. However, the short-term outlook does not exactly look bullish as XRP might swing sideways as mentioned previously.