According to data from the on-chain analytics platform Santiment, Ripple [XRP] was showing a few bullish signs at the time of publication. This could lead to some gains for altcoin holders in the new trading year.
As of this writing, XRP was trading at $0.3511 on CoinMarketCap. XRP has mostly traded in a range between $0.28 and $0.54 over the last six months. Furthermore, the altcoin has been declining since 2021.
This, however, remained part of a larger upward trend that, according to Santiment, could complete a triangle pattern formation. Because its price is at the bottom of this triangle, some investors may regard it as a low-risk, high-reward opportunity.
According to an analysis of the supply distribution on the XRP network, investors who held between one million and ten million XRP increased their holdings by 25% over the last six months. This brings the total XRP holdings of this cohort to 4.09 billion XRP.
This whale category’s activity could also be considered a significant determinant of XRP’s price direction. Sanitment discovered that increased XRP accumulation in the last six months in the face of a persistent decline in the alt’s value could indicate that the bottom had been reached.
Furthermore, as of press time, XRP’s Market Value to Realized Value (MVRV) ratio on a 30-day moving average showed that traders were currently losing -7% on average. Traders are often hesitant to sell their coins at this level because they will incur losses. As a result, holding could result in an increase in the value of XRP.
A look at the MVRV Long/Short difference metric revealed that long-term investors have become more confident of a positive price rebound in the near future. As a result, their positions have grown.
A continuation of this metric’s upward trend and the relative stability of XRP’s price would drive out the market’s FUD. Furthermore, this could result in a much-needed price increase for XRP.
In terms of market sentiment, Santiment data revealed that the XRP market had been plagued by negative investor sentiment over the last two months. Despite the negative sentiment during this time period, the price of XRP remained unchanged.
This divergence frequently indicates that sellers have reached their limit, with very few willing to sell at current prices. In such cases, Santiment believes:
“The price of an asset can sometimes go against the sentiment of retail traders, meaning that it could increase even though there is a bearish sentiment.”
