XRP Dormant Token Surge Fuels Speculation, Potential Dip Buying Interest

The recent rise in inactive XRP token movement has sparked attention, according to a Santiment analysis. The XRP Ledger has witnessed a surge in dormant tokens "moving to open," resembling the increase in old coin movement recorded on April 13th before a market crash. Experts suggest this movement may indicate investors' buy-the-dip interest, with prices rising since the May peak.

XRP's Dormant Token Movement Raises Speculation of Potential Market Activity

A recent analysis by the Santiment platform has drawn attention to a marked increase in the movement of inactive XRP tokens, a notable trend in May. This surge in dormant token activity parallels similar observations in April, which preceded a market downturn and a significant price decline for XRP.

Analysts have identified a metric indicating a notable increase in the movement of old XRP coins, similar to the activity observed on April 13th, just before a market crash that led to a 16% drop in XRP's value. However, experts suggest that this time, the movement of long-dormant XRP tokens may be driven by potential "buy the dip" interest from investors.

"Our Token Age Consumed metric indicates that this was a remarkably similar increase in old coin movement compared to the peak on April 13th, just before markets tanked and $XRP dropped -16% in value," the analysis highlights. "This time, however, there is an argument that this long-standing currency movement is related to potential buy-the-dip interest from key stakeholders, and prices have been rising slightly since the May peak occurred. Additionally, keep in mind the growing open interest on exchanges, which has just reached a 3-week high."

At the time of publication, the XRP price was quoted at US$0.5244, representing a 1.0% increase over the previous 24 hours. During this period, the cryptocurrency registered a trading volume of US$1.089.593.043.

Potential for a 250% Increase in XRP Price by July

A separate analysis has suggested that the price of Ripple's native cryptocurrency, XRP, could potentially surge by 250% by July. This optimistic forecast compares the token's current movement to its trajectory in 2021, which culminated in a price target of $1.80.

According to cryptocurrency expert Egrag Crypto, XRP is following a similar trajectory to that observed in 2021. He projects that the token could reach a price of $1.4 by June-July, a key target, with a plausible target zone between $1.2 and $1.8. This would represent a substantial increase of 133% or 250% from the current XRP price.

Implications for Market Participants

The increase in inactive XRP token movement, combined with the potential for a significant price increase, has generated interest among investors. Some analysts believe that this movement could signal a shift in market sentiment towards a more positive outlook for XRP.

However, it is important to note that market fluctuations are inherently unpredictable, and it remains to be seen whether XRP will experience a sustained price increase as projected by Egrag Crypto. Investors should exercise caution and conduct thorough research before making any investment decisions.