XRP's recent surge has caught investors' attention. Despite positive news, questions about the cryptocurrency's future remain.
XRP's Price Trends and Data
XRP saw a 379% increase in market cap over the past five months. However, according to Brian from Santiment, a slight slowdown may be expected. He highlights the Market Value to Realized Value (MVRV) ratio, which reflects the profits made by holders. Earlier this year, the average XRP wallet grew by 120-134%, but now the increase is more modest at 42% over the past year. Brian suggests that the ideal time to buy XRP might be when the MVRV drops below 20%, indicating a potential for correction and price rebound.
Whale Activity: Calm without Panic
Whale activity, referring to large XRP holders, has slowed down. Currently, about 120 large transactions of over $1 million occur daily, compared to over 5,000 during the early 2023 rally. Nevertheless, large holders continue to retain their XRP. The number of wallets holding a million or more XRP tokens is increasing, reflecting confidence in the token's long-term potential. Since December 2022, the amount of XRP held by these wallets has grown by 11%.
What’s Next for XRP?
With the legal case concluded, XRP might experience short-term price fluctuations as the market reacts. Historically, news about the SEC lawsuit caused XRP's price to dip, only to recover later. If analysts' predictions hold, XRP could reach new heights by May or June if the market remains stable and positive news continues.
Positive news around XRP continues to bolster investor confidence, yet future trends will depend on market conditions and upcoming developments.
