XRP’s 8% price rise and what 130 billion tokens have to do with it

• XRP Age Consumed reached an all-time high on May 1st
• This suggested that a local bottom price had been reached on the charts

XRPThe Age Consumed metric is in the news today after reaching its highest level during the intraday trading session on May 1, according to data from Santiment.

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The consumed age of a resource tracks the movement of its dormant coins. This metric is important because it offers insight into the behavioral changes of long-term security holders. This cohort of cryptocurrency investors rarely moves their dormant coins, but when they do, it often causes a change in market trends.

When the metric rises, it means that a large number of tokens are changing hands after sitting idle for a long period of time. On the other hand, when it falls, it means that the inactive coins remain immobile.

The metric is a good indicator of the local high or low price of an asset, depending on how its price moves after such movements.

Is a rally expected for XRP?

According to Santiment, 130 billion dormant XRP tokens were moved on May 1. This was followed by a rally in the price of XRP. At the time of writing, the altcoin was worth $0.52, with a price increase of 8% in just 2 days, according to CoinMarketCap.

A combined reading of XRP’s peak Age Consumed metric and subsequent price rally could suggest that the price bottom was reached on May 1, when the token’s price fell to a low of $0.48. Subsequently, the altcoin started an uptrend in the charts.

This was confirmed by the significant drop in XRP’s Network Profit/Loss (NPL) metric on the same day. This metric measures the difference between the price at which tokens were last spent and their current market price.

When this metric drops significantly, it signals short-term capitulation of paper hands and a surge in new demand. This often means that a price bottom has been reached, as declines in NPLs tend to coincide with local rebounds and periods of price recovery.

On May 1, XRP NPLs fell to a low of -54 million, the lowest level since December 2022.

Source: Santimento

Realistic or not, that’s it The market cap of XRP in BTC terms

XRP sees sustained demand

An evaluation of XRP price movements on the daily chart confirmed the possibility of a near-term price increase. Indeed, as of this writing, the token’s key momentum indicators were picking up, indicating a surge in demand.

For example, XRP’s Chaikin Money Flow (CMF), which tracks the flow of money into and out of an asset, was trending up at 0.28. A positive CMF value above zero indicates market strength – A sign of low capital flight.

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