Markets

What next for the price of Ripple (XRP) in 2023?

Despite the recent downturn in the altcoin markets, the XRP bulls were aggressively defending the $0.45 price support level. This week, bullish price momentum has been brewing across the Ripple (XRP) ecosystem. Is XRP Set to Push to $0.60?

Ripple (XRP) has stayed above $0.40 for 30 consecutive trading days. Long term holders offer diamond hands while whales buy dips. Could XRP See More Bullish Momentum In May?

Long term investors offer diamond hands

According to on-chain data, long-term XRP holders are increasingly confident in XRP price predictions. Looking at the chart below, the average lifespan of XRP coins has increased significantly this month. Since the last low around March 31st, it has risen steadily from 1301 to 1325 as of April 25th.

Ripple (XRP) price vs the average age of the coin. April 2023 Source: Emotion

Average coin age measures the average time that all coins in circulation have been held since their last transaction. An increase in the average life of a coin could be a bullish sign that investors are stacking up for longer.

Thus, it may be less likely to sell them near current prices. This typically indicates that despite the recent downward price trend, network participants remain confident in the future price prospects and utility of XRP for the long term.

Thus, if long-term investors continue to hold out and whales continue to buy, XRP is likely to deliver a positive growth performance in the coming weeks.

Whales buy dives

In addition, the wave of accumulation among XRP whales also confirms the bullish momentum within the Ripple ecosystem.

The Santiment chart below shows how whales holding one to ten million units of XRP have been buying the dip since last week. The yellow line indicates that whales intensified accumulation around April 18th. Since then, they have added 50 million coins worth approximately $23.5 million with a current market value of $0.47.

Ripple (XRP) price against crypto whale wallet balances.  April 2023
Ripple (XRP) price against crypto whale wallet balances. April 2023 Source: Emotion

The recent buying/selling patterns of these whales are closely related to the price action of XRP. If this accumulation trend continues, investors can anticipate a potential price hike.

XRP Price Prediction: A rally above $0.60 is on the cards

Over the past week, bullish XRP holders defended the $0.45 support level. And according to Santiment’s Market Value to Realized Value (MVRV) data, a bullish bounce could now be on the cards.

Notably, most of the cryptocurrency investors who bought XRP over the past month are seeing unrealized losses of around 5%. Historical data suggests that selling is unlikely until the price recovers another 12% towards $0.52.

If XRP can breach the $0.52 resistance, it could enter a prolonged rally towards the $0.60 area before the bears start gathering again.

Ripple (XRP) Price vs MVRV Ratio.  April 2023.
Ripple (XRP) Price vs MVRV Ratio. April 2023 Source: Emotion

Conversely, the bears could turn the narrative around if the price of XRP drops below $0.45. However, investors are likely to offer upside support at this level as they look to keep the loss position below 10%.

Otherwise, XRP could drop further towards $0.40, which is the next important support level.

Disclaimer

In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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