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Santiment, an analysis company on the chain, predicts that something great could be hatched for the xrp price. 2022 was a tough year for cryptocurrencies, where the majority of digital assets, including xrp underperformed.
With 2023 on us, some crypto lovers seek to xrp course.
The following are five positive catalysts.
According to a publication by Santiment, over the past six months, the XRP price has generally fluctuated between $0.28 and $0.54. It has also been on a downward trend since 2021, but this is part of a larger upward trend that could complement the formation of a triangle.
The price is currently at the bottom of this triangle, which some investors may perceive as a favourable opportunity with both a small risk and a large gain.
Second, the group of XRP holders who own between 1 and 10 million XRP has added 25% to their assets in the past six months, for a total of 4.09 billion x-rays. At the bottom of the markets, this degree of build-up is common.
In addition, except for the UFD event in December 2020, this group of holders normally has a considerable influence on the price of the XRP.
Thirdly, the BINANCE funding rate for XRP is currently slightly negative, indicating a downward sentiment among merchants. However, it is important to note that ordinary binance traders may not be in a position to accurately predict the short-term price changes of an asset.
Fourth, short-term traders are currently facing average losses of -7%, based on the 30-day mvrv for xrp, which measures their earnings. As a result, they may be reluctant to sell their parts at a loss, resulting in an increase in the price of xrp.
Last, if the long/short mvrv difference (the difference between the average profit or loss of long-term owners and short-term holdings) is on the rise while the price remains broadly lateral, This could indicate that long-term holders are increasingly confident and expanding their positions.
Long-term owners are often seen as "stable" investors who are less likely to sell their investments due to short-term price fluctuations, that may contribute to future price increases. That's been the case with xrp over the last few months.
After assessing xrp through numerous measurements and technical analyses, health analysts conclude that the investment in xrp is similar to playing roulette. The price has been fairly flat over the last six months, and most retail traders on Binance are looking down on XRP.
Long-term investors are optimistic, while short-term traders can be fearful of selling, so who knows what's going to happen? Perhaps xrp will be the next great thing, or perhaps it will fail dismally.
