$XRP What is happening in the Ripple token market
Short-term and medium-term holders see the current decline as an opportunity to accumulate. On-chain analysis shows that new market participants have increased their holdings over the past two weeks, hoping for a quick recovery. According to G*******e, the HODL Waves metric for XRP indicates that these two groups of investors are becoming more active.
Those who hold tokens for one to three months (short-term holders) currently control 9.51% of the circulating supply. This group has increased their holdings by 8% since August 14, reflecting their confidence in a potential recovery.
Medium-term investors have also joined the 'buying on the dip' trend. According to G*******e, the group holding tokens for 6 to 12 months now controls 23.19% of the circulating supply of XRP — the highest level since the beginning of the year. The dynamics indicate a resumption of accumulation while the altcoin is trading at a low level.
The optimism of buyers contrasts with the behavior of long-term holders (LTH). This is evident from the L********s metric for XRP, which has been steadily increasing since August 19.
The L********s metric tracks the movement of long-term tokens. It measures the ratio of destroyed coin days to the total number of accumulated days. An increase in the metric indicates that LTH are moving or selling their coins. A decline suggests asset outflows from exchanges, which is considered a signal of accumulation.
The current growth of the metric creates additional selling pressure on XRP as LTH move or sell their tokens.
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XRP Forecast: Where Will the Price Go
The difference in investor behavior highlights the uncertainty of XRP's short-term trajectory. Its recovery depends on whether new demand can outweigh the selling pressure from seasoned investors. If this happens, XRP will have a chance to surpass the $3 mark and rise to $3.22.
If the sell-offs intensify, the price of XRP risks continuing to fall to $2.63.
