During December 10th, Ripple’s XRP experienced a brief dip below the $2 mark, sparking speculations about a possible slowdown in its upward trend.
However, the rapid recovery of 8% within the last 24 hours has revived optimism among investors and analysts alike.
Beneath the surface, there are subtle indicators suggesting that XRP’s rally might still have ample room for growth, indicating that its positive momentum could be far from reaching its peak. Let’s delve into the factors driving XRP’s potential resurgence.
Active Movement of Dormant XRP Tokens
The Mean Dollar Invested Age (MDIA) for XRP has witnessed a sharp decline, signifying notable on-chain movements.
In the past, a decrease in MDIA has been linked to the activation of formerly inactive tokens, hinting at a rejuvenated investor interest.
Conversely, an increase in MDIA suggests a lack of movement, as long-term holders tend to retain their holdings, limiting the coin’s upward mobility.
Presently, XRP’s MDIA has reached its lowest point since the beginning of November.
This downward trend suggests that previously stagnant tokens are back in circulation, enhancing liquidity and trade volumes, both crucial elements for a sustained price surge.
The resurgence of dormant assets typically aligns with bullish market trends, signifying that fresh trading activities are driving forces behind price fluctuations, with both retail and institutional investors taking advantage of market movements.
Backed by XRP’s quick price recovery, the dwindling MDIA indicates a surge in market engagement, reinforcing the optimistic forecast for XRP’s future price trajectory.
If this pattern continues, XRP stands a chance to uphold its upward movement.