Ripple’s (XRP) price briefly dipped below $2 on December 10, causing concerns about the end of its upward trend. However, those fears were short-lived as XRP bounced back with an impressive 8% gain in the last 24 hours.
Key Indicators Support XRP Price Growth
Several lesser-known on-chain metrics suggest that XRP’s price rally may not be over yet. These indicators point to increased trading activity and growing market confidence.
Dormant XRP Tokens Return to Circulation
The Mean Dollar Invested Age (MDIA), an important on-chain metric, shows promising signs for XRP. MDIA measures the average age of tokens held on the blockchain, weighted by their purchase value.
A high MDIA often signals market stagnation, as stakeholders hold onto their tokens without trading. Currently, XRP’s MDIA has dropped to a notably low level. This indicates that previously dormant tokens have returned to circulation, increasing liquidity and boosting market activity—a bullish signal for the cryptocurrency.
Rising Taker Buy Ratio Reflects Buyer Confidence
Another bullish indicator is the Taker Buy Ratio, which measures the share of buy orders in the derivatives market. A ratio above 0.5 indicates that buyers dominate trading activity.
According to CryptoQuant, XRP’s Taker Buy Ratio has climbed to 0.55, signaling increasing buying pressure. This upward trend hints at growing market optimism and the potential for further price gains. However, if the ratio dips below 0.5, it could suggest a bearish shift, requiring caution.
Technical Analysis: Bulls Push XRP Back on Track
On December 12, XRP’s price briefly fell below the 20 and 50 Exponential Moving Averages (EMA), hinting at a possible correction. However, bulls quickly regained control, pushing the price back above these key levels.
This recovery signals renewed bullish momentum, with XRP likely to climb toward $2.90 in the short term. If buying pressure continues to grow, the token could surge to $3.50. Conver
