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Ripple tokens (XRP) are seeing large-scale trading activity
The 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 suggests a change in market trends.
Ripple traders make calculated moves
An on-chain evaluation of XRP’s performance revealed a significant spike in its Age Consumed metric on May 16. That day, the value of the parameter was 222 billion.
This metric tracks the movement of XRP tokens held for a long period of time. It helps gauge the sentiment of long-term holders of the token. This cohort of investors rarely moves their tokens. Therefore, when this happens, it is often followed by a change in market trends.
As XRP’s Age Consumed metric increases, many tokens that have been dormant for a long time begin to change hands.
While this may mean that long-term holders of the token are selling their coins, this is not always the case. Sometimes, it connotes a surge in overall trading activity, not necessarily due to selling of long-term holders.
In the case of XRP, 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.
In fact, on May 16, XRP price rose above its 20-day exponential moving average (EMA). which is where it is currently trading.
When the price of an asset rises above this key moving average, its current value exceeds the average price of the last 20 days. It is considered a bullish sign.
To know more: Everything you need to know about Ripple vs SEC
At the time of writing, XRP is trading at $0.52.
XRP Price Prediction: A Rally to Watch?
For the first time since May 8, the XRP Elder-Ray Index recorded a positive value on May 16. This indicator tracks the relationship between the strength of buyers and sellers of the token in the market.
When its value is positive like this, it means that the bullish force dominates the market. At the time of writing, XRP’s Elder-Ray Index remained positive at 0.0065.
Furthermore, the altcoin’s Money Flow Index (MFI) stood above its neutral level of 50 to 56. This showed that the buying pressure has exceeded the symbolic sell-offs among market participants.
If the current market trend is sustained and accumulation increases, XRP price could rise towards $0.53 and then $0.57.
To know more: Ripple (XRP) Price Prediction 2024/2025/2030
However, if long-term holders of XRP start selling their tokens, this could put downward pressure have it trading at $0.48 level.
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