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Ripple (XRP) Awakens: Long-Held Tokens Changing Hands

2 mins
Updated by Ryan Boltman
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In Brief

  • Ripple saw a significant spike in its Age Consumed on May 16.
  • This suggests that long-held XRP tokens are beginning to change addresses.
  • There are no indications yet that long-term holders are selling their assets.
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Long-held Ripple (XRP) tokens moved addresses during the intraday trading session on May 16.

XRP long-term holders rarely move their tokens around. So when they do, it hints at a shift in market trends.

Ripple Traders Make Calculated Moves

An on-chain assessment of XRP’s performance revealed a significant spike in its Age Consumed metric on May 16. On that day, the metric’s value was 222 billion.

This metric tracks the movement of XRP tokens held for a long period of time. It helps gauge the sentiment of the token’s long-term holders. This cohort of investors rarely moves their tokens around. Therefore, when they do, it is often followed by a shift in market trends. 

When XRP’s Age Consumed metric spikes, many tokens left dormant for a long time are beginning to change hands. 

While this may mean that the token’s long-term holders are selling their coins, this is not always the case. Sometimes, it connotes a surge in overall trading activity, not necessarily from long-term holders selling.

In XRP’s case, the rally in its price confirmed that the surge in Age Consumed was due to an overall increase in trading activity and not because long-term holders were selling.

Ripple Age Consumed.
Ripple Age Consumed. Source: Santiment

In fact, on May 16, XRP’s price climbed above its 20-day Exponential Moving Average (EMA), which is where it currently trades. 

When an asset’s price rallies above this key moving average, its current value surpasses its average price in the past 20 days. It is regarded as a bullish signal. 

Read More: Everything You Need To Know About Ripple vs SEC

Ripple Price Analysis
Ripple Price Analysis. Source: TradingView

At press time, XRP trades at $0.52.

XRP Price Prediction: A Rally to Follow?

For the first time since May 8, XRP’s Elder-Ray Index posted a positive value on May 16. This indicator tracks the relationship between the strength of the token’s buyers and sellers in the market.

When its value is positive like this, it means that bull strength dominates the market. As of this writing, XRP’s Elder-Ray Index remained positive at 0.0065. 

Further, the altcoin’s Money Flow Index (MFI) rested above its neutral 50 level at 56. This showed that buying pressure exceeded token sell-offs among market participants.

If the current market trend is sustained and accumulation climbs, XRP’s price might rally toward $0.53 and then $0.57.

Read More: Ripple (XRP) Price Prediction 2024/2025/2030

Ripple Price Analysis. Source: TradingView

However, if XRP’s long-term holders begin to sell their tokens, it may put downward pressure and cause it to trade at the $0.48 level.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment,...
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