XRP Holders Stand Strong Amid Price Stagnation

Are XRP Holders Holding Strong Despite Price Stagnation?

Despite XRP's underwhelming price performance, holders have remained steadfast in their belief, opting to retain their tokens. Technical analysis hints at potential support at $0.61, which could shield XRP from further decline.

Is XRP's Dormant Circulation at an All-Time Low?

AMBCrypto's analysis reveals a significant drop in XRP's 90-day dormant circulation, reaching its lowest level this year. On March 12th, dormant circulation stood at 84.71 million, but at press time, it had plummeted to a mere 5.66 million. This metric measures the movement of "old age" tokens, which can indicate potential selling or enhanced security measures.

Are Old and New XRP Users Steering Clear of Exchanges?

The decline in XRP's dormant circulation could bode well for its price. Despite a substantial drop from its value on March 12th, XRP's current price of $0.62 remains relatively stable. Historically, high dormant circulation has correlated with XRP's price struggles. However, with decreasing dormancy, selling pressure may ease, potentially preventing a sharp price decline in the near term.

Are XRP Whales Offloading Their Tokens on Exchanges?

To gain a broader perspective, AMBCrypto examined XRP's exchange activity. At the time of writing, XRP's exchange inflow, representing tokens leaving non-exchange wallets, was 549,000. This suggests that some tokens were likely converted into other assets or stablecoins.

Conversely, the exchange outflow was significantly higher at 2.42 million, indicating that more tokens were being moved into self-custody. This divergence between inflow and outflow points to a potential uptrend rather than a decline.

Are XRP Bulls Eyeing a Return to $0.70?

From a bullish standpoint, XRP's price could potentially rally towards $0.70. However, traders should exercise caution, as market sentiment can shift rapidly. A change in sentiment could adversely impact XRP's price, invalidating this forecast.

What Does Technical Analysis Reveal About XRP's Short-Term Outlook?

Technical indicators provide insights into XRP's short-term trajectory. At press time, the Relative Strength Index (RSI) hovered above the neutral point, suggesting that buyers were dominating the price action.

The 4-hour XRP/USD chart also showcased support around $0.61. However, resistance lies at $0.64, indicating a potential struggle. A breakout above this level could push XRP towards $0.68, while a rejection could trigger a price decline.

Additionally, the Commodity Channel Index (CCI) suggests that a significant drop is unlikely. The CCI was above zero at press time, indicating that XRP's price action could continue to target the upside.