Altcoins
XRP Shows Bullish Signs: Will the Altcoin Finally Cross $0.50?
- XRP has hinted at a price increase amid decreasing blockchain transactions.
- Demand for the token from new investors has remained low.
XRP seems determined to make up some of its losses, if the signals found by AMBCrypto are to be believed. If this happens, the token’s price could retest $0.50 or surpass it.
The first metric indicating this potential increase was the average dollar investment age (MDIA). In non-technical terms, MDIA measures the purchase price-weighted average of tokens.
Commercial activity falls
If the reading decreases, it means that previously stagnant tokens are returning to circulation. However, an ascending MDIA line implies that holders refrain from increased trading activity.
At press time, XRP’s 90-day duration had increased to 2083, indicating that blockchain transactions was weaker than usual. This implies that the chances of XRP being included in the bull run have increased.
Source: Santiment
At press time, the token’s price was $0.48. This is a decrease of 22.62% over the last 90 days. If this value continues to increase, the value of XRP may no longer experience a notable decline. correction.
Another factor that could affect the price action of XRP is the persistent lawsuit involving the American SEC. Although the token no longer had any “security” issues, the matter was not yet over.
If the court asks Ripple to pay a fine, the value of the token could fall further. However, if the blockchain payments company wins the argument, the value of the cryptocurrency could skyrocket.
XRP Adoption Declines but Research Increases
Despite the potential for price increases, Ripple’s network growth has not kept pace. Network growth measures the number of new addresses interacting with a blockchain.
When the metric increases, it means a project is gaining a lot of traction. However, since XRP decreases in this regard, it implies that token adoption has become too difficult a problem to achieve.
In case the metric drops again, XRP may struggle to reach $0.50. Regardless, sentiment around the token remained optimistic.
Source: Santiment
AMBCrypto discovered this after looking at weighted sentiment. To arrive at a reading, Weighted Sentiment analyzes the comments made online on a project.
A negative reading implies that the average comment is bearish. At the time of writing, reading had jumped up in the positive region, indicating that demand for XRP may start to improve.
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Additionally, the social volume around cryptocurrency has improved. This means that the search for the native Ripple token has increased.
Source: Santiment
Given the growing sentiment and online search for the token, XRP could be well on its way to reaching a higher value. However, the price prediction could be invalidated if the market continues to undergo a correction phase.