XRP Holds Above $2 Thanks to the Return of the Bulls

On December 10, Ripple (XRP) price unexpectedly slipped below $2, sparking speculation that its long uptrend may be over. However, these concerns were short-lived. XRP has recovered strongly, recording an 8% increase in the past 24 hours.

Interestingly, some under-the-radar indicators suggest that this year’s XRP price rally may still have room to continue. Here’s why.

Ripple Shareholders Release More Tokens Into Circulation

The Coin Investment Average (MDIA) is an on-chain index that suggests the XRP price may continue to trade at higher levels. MDIA represents the average age of all Tokens on a Blockchain, calculated by their purchase value.

The increase in MDIA shows that the coins, typically held by key shareholders, have not changed. Historically, this inactivity makes it difficult for altcoin prices to increase significantly. Currently, XRP’s MDIA has dropped to a significantly low level. This index, which reflects the average age of traded tokens, signals the recirculation of previously dormant assets.

In contrast to high MDIA, which implies stagnation, low MDIA is considered a bullish signal. The drop shows that dormant XRP tokens are back in circulation, boosting trading activity and liquidity.

In addition to MDIA, the Buy Sell Ratio also suggests the possibility of further price increases for XRP. This ratio measures the ratio of executed buy orders compared to the total number of transactions in the derivatives market.

A Taker Ratio above 0.5 indicates rising bullish sentiment, suggesting that buyers are gaining control. According to data from CryptoQuant, the index rose to 0.55, highlighting a significant jump in buying pressure around XRP.

If this trend continues, it could signal strong optimism in the market, potentially pushing XRP to new price levels in the coming sessions. However, if it falls below this threshold, it will show pessimism and need to be cautious.

XRP Price Forecast: Bulls Take Back Control

On the 4-hour chart, XRP price temporarily slipped below the 20 and 50 Exponential Moving Average (EMA) on December 12. EMA is a technical indicator that measures trend.

When prices fall below these indicators, it typically signals a bearish trend, while rising above them signifies bullish momentum. The recent decline suggests the possibility of a further correction for XRP.

Now, however, the bulls have regained control, pushing the price back above this level. This change suggests a return to bullish momentum, with the possibility of XRP reaching $2.90 in the short term.

If buying pressure intensifies, it could potentially push the price to $3.50. Conversely, if the number of dormant tokens entering circulation decreases, this may not happen, and the token may drop to $1.93.

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