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- Dormant XRP tokens will be reactivated, boosting liquidity and fueling investor confidence.
- The rising taker buy ratio reflects the growing bullish dominance in the XRP derivatives market.
Ripple’s takes place on December 10th [XRP] The price briefly fell below $2, fueling speculation that the extended uptrend may be running out.
However, the rapid recovery of 8% in the past 24 hours has revived optimism.
Beyond the surface, under-the-radar indicators suggest that XRP’s rally has more room to grow, indicating that the bullish momentum is far from over. Here’s what could drive XRP higher.
Dormant XRP tokens are on the move
The Mean Dollar Invested Age (MDIA) for XRP has fallen sharply, indicating significant activity on the chain.
Historically, a low MDIA reflects the reactivation of previously dormant tokens, often signaling renewed investor confidence.
In contrast, a rising MDIA implies stagnation, as coins held by long-term stakeholders remain untouched, limiting upside potential.
Source: Santiment
Currently, XRP’s MDIA has fallen to its lowest level since early November.
This downward shift signals that long-dormant tokens are returning to circulation, increasing liquidity and trading volumes – both crucial factors for sustained price momentum.
The recirculation of dormant assets typically coincides with bullish phases, as new trading activity signals both private and larger stakeholders taking advantage of price movements.
Combined with XRP’s rapid price recovery, the declining MDIA underlines growing market participation and strengthens the case for XRP’s bullish outlook.
If this trend continues, XRP could continue its upward trajectory.
Buyers regain control
Source: Cryptoquant
In addition to the on-chain activity, the taker buy ratio in the XRP derivatives market further strengthens the bullish outlook. This metric measures the share of buy orders relative to the total number of taker transactions.
Whenever the ratio crosses 0.5, it signals increasing bullish dominance as buyers outpace sellers.
Recent data from CryptoQuant showed that the taker buy ratio had risen to 0.55, reflecting a sharp increase in buying pressure.
Historically, such moves align with periods of sustained price gains, as traders exhibit greater confidence in upward momentum.
While current figures indicate a favorable environment, investors should keep a close eye on this.
A sustained taker buy ratio above 0.5 could fuel further gains, while a decline below this threshold could signal waning optimism and prompt profit-taking.
XRP price and volume analysis
On the 4-hour chart, the price of XRP briefly fell below the 20 and 50 EMAs on December 12, indicating a possible correction. However, the rapid recovery above these indicators has restored bullish sentiment.
The EMAs are now acting as dynamic support, with XRP consolidating near $2.40. In particular, the low volume associated with the recent price stabilization signals reduced selling pressure, which benefits buyers in the short term.
Source: TradingView
Should trading volume increase alongside continued price stability above the EMAs, XRP could regain its bullish momentum and target $2.90.
Read Ripple’s [XRP] Price forecast 2024–2025
If volume doesn’t grow, you risk a sideways move or a retest of the $2.30 support.
The alignment with the EMA and the current recovery underline buyers’ control, but continued volume growth remains critical for momentum towards the $3.50 mark.
