- XRP holders with between 1 million and 1 billion tokens have begun accumulating more tokens this month.
- As participants acquire more tokens off-chain, the price could reach $0.56.
If the signals observed by AMBCrypto are any indication, Ripple [XRP] The price may be heading higher: for a long time, the token has been trading in a narrow range of $0.50 to $0.53.
However, data from Santiment shows that XRP holders between 1 million and 1 billion have been increasing their balances since June 1. For example, as of May 31, holders between 1 million and 10 million made up 16.63% of the supply.
At the time of writing, the percentage Increased The 100-100 million group saw a similar increase, with the balance increasing to 6.07%.
Source: Santiment
Investors are addressing the issue head on
As major stakeholders in the cryptocurrency, the actions these addresses take affect the price, and interestingly, that impact is reflected in the value of XRP.
A few days ago, AMBCrypto reported that the token could fall to $0.50, but it seems that XRP is targeting a price rise to $0.55, and the genie has escaped from the magic lamp.
The accumulation would need to be sustained to validate this prediction, but beyond that, it is important to analyze other aspects of the XRP ledger that could tell investors if the uptrend continues.
For this, AMBCrypto checked the Realized Cap: when the Realized Cap increases, it means that coins accumulated at a lower price are being spent, while when this metric decreases, it suggests that coins purchased at a higher price are being liquidated.
Will XRP crash?
From a psychological perspective, this indicator can act as a strong support or resistance. At the time of writing, XRP’s 7-day realized cap is skyrocketing. This sharp increase suggests that new XRP holders are not being impacted by realized losses.
So, the bull market could work in favor of the cryptocurrency. However, if the realization cap continues to increase, it could mean that more tokens will be taken off-chain, which could drive up the price of XRP.
In addition, the daily volatility Signaled We predicted that the token’s price may fluctuate significantly, as the volatility value rose to $0.0052.
Source: Santiment
If buying pressure picks up along with the surge, XRP can attempt to retrace the $0.56 mark. In a very bullish scenario, the price can reach $0.62.
Ripple [XRP] Price forecast 2024-2025
However, traders may need to keep a close eye on price action.
The bullish prediction may be invalidated if a bearish dominance emerges, in which case XRP’s next move could be a consolidation or a drop to $0.50, as we mentioned in our previous article.
