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What's Next for XRP After 100k More Holders Join?

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By Erika John - - 5 Mins Read
Ripple XRP coin, chart in the background
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Confidence in XRP is increasing, even though the token’s price is still below a bullish target. As of the end of May, there were 5.2 million XRP holders.

Surprisingly, an additional 100,000 holders had joined the ranks by the first week of June. This surge in holders indicates a growing interest in XRP despite its price fluctuations.

At the time of writing, XRP’s price is $0.48, down by nearly 2% over the past seven days. Considering the influx of holders, it is likely that the cryptocurrency could be in line for a surge. 


XRP/USD price chart
XRP/USD | CoinMarketCap


Market Shifts and Predictions

Recent analyses from AMB Crypto indicate that XRP could be heading for a price drop. However, the current trends suggest otherwise.

One important metric is the Mean Dollar Invested Age (MDIA), which shows the average age at which all XRP holders have held their coins.

When the MDIA decreases, transaction activity increases, often leading to a price drop. Conversely, an increasing MDIA means long-term holders are holding onto their coins, which can support price stability or increase.

On June 1st, the 90-day MDIA for XRP was 1812. As of now, it’s approaching 2000. This suggests that most holders are opting to hold rather than sell. If this trend continues, the price might rise, potentially hitting a target of $0.55.

Another key metric is circulation. This measures the number of tokens engaged in transactions within a given period. Currently, the one-day XRP circulation is at 228.53 million.

A higher circulation might indicate increased selling pressure. However, the current circulation suggests that holders must sell for profit and cut losses. So, if this trend persists, XRP’s value might see a notable rally.

Also read: XRP Loses Position as 5th Biggest Crypto Under Dramatic Conditions

Sentiment and Network Activity

Despite the positive signals from MDIA and circulation, the Weighted Sentiment for XRP is at -1.186.

Weighted Sentiment gauges the positive or negative commentary about an asset.

A positive sentiment indicates the comments are favorable, while a negative sentiment suggests the opposite.

The current negative sentiment for XRP implies that market participants are bearish on the token. If this sentiment persists, XRP might struggle to sustain demand, leading to sideways movement with prices fluctuating between $0.48 and $0.52.

Additionally, the XRP Ledger’s Network Growth has remained flat. This indicates the number of new addresses participating in transactions.

The stagnation in network growth suggests that new addresses are not actively engaging in transactions, which could impact the activity and price movement of XRP.

Holder Behavior and XRP Network Status

It is essential to understand the behavior of XRP holders to predict the token’s future.

Despite the price drop, the increase in the number of holders indicates a growing interest and confidence in XRP.

This increase in XRP holders percentage holders suggests that more investors are seeing potential in the token.

More so, the current XRP network status shows a steady increase in long-term holders, which could support a price increase if this trend continues.