- XRP hinted at a price increase amid decreasing blockchain transactions.
- Demand for the token by new investors remained low.
XRP seems determined to strike out some of its losses, if signals found by AMBCrypto are to be believed. If this happens, the price of the token could retest $0.50, or climb past it.
The first metric that indicated this potential increase was the Mean Dollar Invested Age (MDIA). In non-technical terms, the MDIA measures the average of tokens weighted by the purchase price.
Trading activity falls
If the reading decreases, it means that previously stagnant tokens are moving back into their circulation. However, a rising line of the MDIA implies that holders are refraining from increased trading activity.
At press time, XRP’s 90-day had increased to 2083, indicating that transactions on the blockchain was lower than usual. This implies that XRP’s chances of being included in the bull run has moved higher.
Source: Santiment
At press time, the price of the token was $0.48. This was a 22.62% decrease in the last 90 days. Should this reading continue to increase, XRP’s value might no longer experience a notable correction.
Another factor that could affect XRP’s price action is the lingering lawsuit involving the U.S. SEC. Though the token has no more “securities” issue, the case was not yet over.
Should the court proceed to ask Ripple to pay a fine, the value of the token could plunge further. However, if the blockchain payment firm wins the argument, the cryptocurrency’s value could soar.
XRP adoption drops but search increases
Despite the potential of a price increase, Ripple’s Network Growth did not follow. Network Growth measures the number of new addresses interacting with a blockchain.
When the metric increases, it means that a project is getting a lot of traction. However, since XRP declined in this regard, it implies that adoption of the token has become a problem becoming too difficult to achieve.
In the event that the metric falls again, XRP might find it hard to hit $0.50. Regardless, the sentiment around the token remained bullish.
Source: Santiment
AMBCrypto discovered this after examining the Weighted Sentiment. To arrive at a reading, the Weighted Sentiment analyzes the comments made online about a project.
A negative reading implies that the average comment is bearish. As of this writing, the reading had jumped into the positive region, indicating that demand for XRP might start to get better.
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Furthermore, Social Volume around the cryptocurrency improved. This means that search for the Ripple native token has been increasing.
Source: Santiment
Considering the rising sentiment and online search for the token, XRP could be well on its way to a higher value. However, the price prediction could be invalidated if the market continues to undergo a correction phase.
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