- XRP has been predicted to stage a 20 percent rally if transaction activities intensify and long-term investors keep holding.
- However, the asset risks falling to as low as $0.40 when it falls below 0.46 percent according to experts.
XRP has since August 17 failed to make any considerable run as the asset hovers between $0.5 and $0.55. As of the time of writing, XRP was trading at $0.52. In the last 30 days, the asset has fallen by 26.61 percent. On top of that, the XRP market sentiment stood bearish for more than a week before moving to neutral.
An initial attempt to break the $0.55 resistance level was rejected as sellers took over the market. Regardless of these, XRP network activities have remained steady according to key on-chain activities.
One of the reasons for the continued rejection of XRP’s upward movement has been linked to the general bearish market sentiment of the crypto market. According to Santiment’s Network Value to Transaction Volume (NVT) ratio, XRP has recorded an increase of 340 percent from 51.66 to 226.
This was observed between August 18 and August 24. The NVT is used to determine the underlying transaction activity on the blockchain network in relation to its current price performance. In this case, an increased NVT ratio indicates a steady growth in underlying economic activity in relation to the price movement.
According to analysts, the underlying performance puts the asset in a perfect position for a bull run when the market sentiment changes. This has been observed by some long-term Ripple partners and strategic investors who have decided to hold onto XRP. The previous market crash saw the XRP Mean Coin Age falling by 34.33. Interestingly, it made an incredible comeback to hit 38.30 after surging by 10 percent on August 24.
More on XRP Price Analysis
The Mean Coin Age is used to assess the overall sentiment of long-term investors. This is calculated by monitoring the average number of days for coins in circulation to remain unmoved from their wallet addresses. This simply means that XRP long-term holders have shown their unwillingness to sell the assets based on the 10 percent XRP Mean Coin Age. If this continues for some time, XRP could record a significant run.
Analysts have predicted that there is a huge chance of the asset surging by 20 percent if transactional activities intensify and long-term investors keep holding. This prediction is said to have been validated by the Market Value to Realized Value (MVRV) ratio.
Based on historical patterns, the investors could likely hold out for a 5 percent price surge. However, when investors close their positions at a loss, there could be several rejections at $0.6.
Also, bears could still dictate the market if the price falls below $0.45. It could follow a similar trend as the price crash on August 17 which saw investors unwilling to book profits more than 25 percent. When the $0.45 support level is broken, the price could be as low as $0.40.
XRP currently has a market cap of $27,472,762,992 and a 24-hour trading volume of $826,889,194. In the last 24 hours, the asset has fallen by 1.64 percent.
