XRP, the native token of Ripple, has been trading sideways recently, hovering near $0.51. However, there’s a silver lining for XRP investors: despite the lack of significant price movement, the average investor is still sitting on a healthy profit of 32%.
This profitability stems from a period of strong buying activity that peaked in early October. On-chain data reveals that investors collectively cashed out over $134 million during that time. While a more recent price dip triggered some selling, the Market Value to Realized Value (MVRV) Ratio suggests that most XRP holders remain in the green.
However, a closer look reveals some potential cause for concern. Several indicators point towards waning investor interest in XRP.
Waning Interest, But Potential Upside?
Firstly, XRP’s on-chain activity has been subdued since early October. Metrics like “Age Consumed,” which tracks previously dormant coins, haven’t seen significant spikes, suggesting a lack of fresh investment or movement within the existing investor base.
Secondly, XRP’s open interest in futures markets, which reflects the number of unsettled contracts, has been trending downwards since October 1st. This could indicate either a decrease in investor interest or rising liquidation of existing positions.
Finally, XRP’s trading volume has been consistently low, hovering between $500 million and $1.5 billion since October.
Technical Indicators Offer Hope
Despite these concerns, there are still some bullish signals for XRP. From a technical analysis standpoint, the token has recently crossed above a symmetrical triangle pattern and the 50-day Simple Moving Average (SMA). If this momentum continues and XRP surpasses the 100-day and 200-day SMA, a potential rally towards $0.5608 could be in the cards.
Technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator also currently suggest dominant bullish pressure.
Also read : Can Ripple’s XRP Replace SWIFT? How RippleNet’s 300+ Partnerships Could Push XRP To $500
The Verdict: Wait and See
While XRP investors are currently profitable on average, the near future seems uncertain. Waning investor interest could lead to a price drop, but technical analysis suggests the possibility of an upward move if certain resistances are broken.
Ultimately, only time will tell how XRP will perform. Investors should carefully monitor on-chain activity, trading volume, and technical indicators to make informed decisions.
