XRP price is undergoing a mild recovery push after a long-stretched falloff period.
The coming Bitcoin halving event is likely to trigger a bullish surge for the coin according to analysts.
XRP, the cryptocurrency affiliated with Ripple Labs Inc., appears to be picking up steam as investors hold steady at $0.47. XRP holders are demonstrating bullish momentum, suggesting that selling will be held off for now to make provision for recovery.
XRP Recover Slightly
At the time of writing, XRP price is trading at $0.4917, demonstrating a 2.3% increase in the past day. Simultaneously, the market capitalization increased by 0.7% to $27 billion, while trading volume saw an outstanding increase of 12.2% to $1.7 billion.
This increase is notable as it comes soon after the coin’s price fell substantially. The network realized profit/loss indicator reveals that investors are primarily experiencing losses following the price decrease. However, investors have chosen not to sell their holdings because they believe in the digital asset’s future potential.
When investors lose money in trade, they tend to hold onto their assets rather than sell in the hopes that prices will increase in the future to recover their losses. This behavior in crypto is referred to as “HODLing” or holding.
Investors’ determination to hold their XRP holdings is further evidenced by an increase in the Mean Coin Age (MCA) metric. MCA shows the average age of all coins in a crypto network. It provides insight into the network’s activity level and prospective market changes.
XRP Mean Age. Source: Santiment
An upward trend in the MCA indicates that investors are HODLing their assets. On the other hand, a downward trend indicates that XRP is moving between addresses, implying probable sell-offs.
Overall, the resilience shown by XRP investors is expected to drive the cryptocurrency to high prices. This is because investors’ HODLing creates a supply shortage when they hold on to their assets despite a price decline, potentially leading to an increase in demand and a subsequent price increase.
Can XRP Price Sustain Momentum?
XRP, with its current price level of $0.4917 stands over 13% above the anticipated bearish price of $0.42.
Additionally, the XRP price is only 13% away from reclaiming the crucial support of $0.60. Considering these variables, the anticipated outcome for XRP is more bullish with the price rising by 13%, which would help it reclaim $0.60, potentially pushing it further. However, the opposite scenario would occur if the $0.47 support is breached.
With Bitcoin halving only a few days away, analysts are optimistic that the price of XRP will surge higher. Notably, technical indicators also point to an XRP surge against Bitcoin (BTC). Reiterating Crypto News Flash’s earlier reports, the pair has traded in a falling wedge pattern for two months. According to analysts, this is often a bullish pattern that starts wide at the top and narrows as the price drops. When the price breaks through the pattern’s upper trendline, it explodes to its highest point.
