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- Dormant XRP tokens have been reactivated, increasing liquidity and fueling renewed investor confidence.
- The rise in the taker buy ratio reflects the growing bullish dominance in the XRP derivatives market.
On December 10, the price of Ripple (XRP) briefly fell below $2, fueling speculation that its prolonged uptrend may be running out of steam.
However, the rapid rebound of 8% in the last 24 hours has renewed optimism.
Beyond the surface, hidden indicators indicate that XRP’s rally has more room to grow, signaling that its bullish momentum may be far from over. Here’s what could push XRP higher.
Dormant XRP tokens are on the move
The average dollar investment age (MDIA) for XRP has declined sharply, signaling significant on-chain activity.
Historically, a low MDIA reflects the reactivation of previously dormant tokens, often suggesting renewed investor confidence.
In contrast, a rise in MDIA implies stagnation, as coins held by long-term stakeholders remain intact, limiting upside potential.
Source: Santiment
Currently, XRP’s MDIA has fallen to its lowest level since early November.
This downward development indicates that long-dormant tokens are re-entering circulation, increasing liquidity and trading volumes – both essential factors for sustained price momentum.
The recirculation of dormant assets typically coincides with bullish phases, as new trading activity suggests that retail players and larger stakeholders are profiting from price movements.
Combined with the rapid rebound in XRP prices, the decline in MDIA highlights growing market participation and strengthens the case for XRP’s bullish outlook.
If this trend persists, XRP could maintain its upward trajectory.
Buyers take back control
Source: Cryptoquant
Beyond on-chain activity, the taker buying ratio in the XRP derivatives market further reinforces its bullish outlook. This metric evaluates the share of buy orders in relation to the taker’s total transactions.
Every time the ratio rises above 0.5, it indicates increasing bullish dominance, with buyers outpacing sellers.
Recent data from CryptoQuant showed that the taker buy ratio jumped to 0.55, reflecting a sharp increase in buying pressure.
Historically, such moves align with periods of sustained price gains, with traders showing increased confidence in the upward momentum.
Although current numbers indicate a favorable environment, investors should monitor it closely.
A sustained take-buy ratio above 0.5 could fuel further gains, while a drop below this threshold could signal waning optimism and rapid profit-taking.
XRP Price and Volume Analysis
On the 4-hour chart, XRP price briefly fell below the 20 and 50 EMA on December 12, hinting at a potential correction. However, the rapid recovery above these indicators has restored the bullish sentiment.
The EMAs are now acting as dynamic support, with XRP consolidating near $2.40. Notably, the low volume accompanying the recent price stabilization suggests a reduction in selling pressure, favoring short-term buyers.
Source: TradingView
If trading volume increases alongside continued price stability above the EMAs, XRP could regain its bullish momentum and target $2.90.
Read Ripple (XRP) Price Forecast 2024-2025
If volume fails to increase, it risks a sideways move or a retest of the $2.30 support.
The EMA alignment and current rally highlight buyers’ control, but sustained volume growth remains key to reaching the $3.50 mark.
