At the time of publication, XRP showed a few positive indicators, according to Santiment. The holders of altcoins might benefit from this in the upcoming trading year. As of this writing, $0.3492 worth of XRP was being traded. Over the past six months, XRP trading was primarily range-bound between $0.28 and $0.54. Additionally, since 2021, the altcoin has been trending downward.
XRP/USD 4-hour chart | Source: TradingView
Santiment believed that this was still a part of a broader ascending trend that had the potential to form a triangular pattern. Some investors may consider it a low-risk, high-reward investment, given its pricing near the triangle’s base.
Investors who held between one million and ten million XRP boosted their holdings by 25% during the previous six months, according to an analysis of the supply distribution on the XRP network. As a result, this cohort of XRP holders now held 4.09 billion XRP in total.
The activities of this whale category might significantly influence the movement of the price of XRP. A continuous decrease in the altcoin’s value and increased XRP accumulation over the past six months may indicate that the bottom has been reached.
Source: Santiment
Additionally, as of the publication, traders were currently experiencing average losses of -7% according to the Market Value to Realized Value (MVRV) ratio on a 30-day moving average for XRP.
Source: Santiment
In many cases, dealers hesitate to sell their coins at this price since they will lose money. Thus, holding might result in a rise in the price of XRP.
Source: Santiment
Long-term investors have grown increasingly confident that a price recovery would soon turn positive, according to an analysis of the MVRV Long/Short difference metric. They have elevated their standing as a result.
The FUD that has persisted in the market would disappear if this indicator continued to rise and the price of XRP remained relatively stable. In addition, the price of XRP might rise in a much-needed rally.
Regarding market sentiment, statistics from Santiment revealed that in the previous two months, the XRP market had been beset by unfavorable investor sentiment. Nevertheless, the price of XRP was untouched by the period’s unfavorable mood. “The price of an asset can sometimes go against the sentiment of retail traders, meaning that it could increase even though there is a bearish sentiment”, this disparity frequently shows that sellers are depleted. Few are willing to sell at the going rates. In such cases, Santiment suggested.
Source: Santiment
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