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The XRP ledger is showing signs of activity as the dormant token moves amid market speculation
In recent days, the XRP Register saw a surge in activity as dormant tokens began to move, reminiscent of a similar event in April.
This movement, highlighted by the Santiment feed’s Token Age Consumed metric, mirrors the peak observed shortly before XRP suffered a significant decline in value, plunging 16%.
However, this time, there is a compelling argument suggesting that the movement of the old coins could be linked to the potential interest of major stakeholders to “buy the dip”.
Notably, prices have seen a slight increase following May’s surge, offering a contrasting narrative to the previous decline.
🤑 #XRPLedger saw an abundance of dormant tokens move to open May. Our Token Age Consumed metric indicates that this was a remarkably similar spike in old coin movement compared to the peak on April 13, just before markets collapsed and $XRP fell -16% in… pic.twitter.com/vHpaDuJNaE
— Santiment (@santimentfeed) May 2, 2024
Increase in open interest on trades hits three-week high
Adding to the complexity of the situation is the observation of an increase in open interest on the exchanges, which reached a three-week high starting May 2, for a total of $483.4 million.
This increase in open interest further fuels speculation about the intentions of market participants, suggesting a potential shift in sentiment towards XRP.
While patterns may resemble past market movements, it is essential to consider the evolving dynamics at play.
The current landscape suggests a nuanced interplay between dormant token movements, market sentiment, and the actions of key stakeholders.
As the market continues to develop, both investors and analysts will be closely monitoring these developments to gather insights into XRP’s trajectory and the broader cryptocurrency markets.
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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