XRP Might Be the Next Big Thing in 2023, Here Are Five Reasons per Santiment

Santiment, an on-chain analytics firm, predicts that something big might be brewing for the XRP price. The year 2022 was a rough one for cryptocurrencies, in which most digital assets including XRP underperformed.

With 2023 upon us, some crypto enthusiasts are looking out for XRP price action.

Here Are Five Positive Catalysts

According to a Santiment community post, for the last six months, the price of XRP has generally fluctuated between $0.28 and $0.54. It has also been declining since 2021, however, this is part of a bigger ascending trend that might potentially complete a triangle formation.

The price is currently at the bottom of this triangle, which some investors may perceive as a favorable chance with both low risk and great gain.

Second, the group of XRP holders who own between 1 million and 10 million XRP has added to their holdings by 25% over the last six months, bringing the total to 4.09 billion XRP. At market bottoms, this degree of accumulation is common.

Furthermore, with the exception of the FUD event in December 2020, this group of holders normally has a substantial influence on the price of XRP.

Third, Binance’s funding rate for XRP is currently slightly negative, indicating a bearish sentiment among traders. However, it is vital to highlight that ordinary traders on Binance may not be able to precisely predict an asset’s short-term price changes.

Fourth, short-term traders are currently facing average losses of -7%, according to the MVRV 30-day for XRP, which evaluates their profit or loss. As a result, they may be hesitant to sell their coins at a loss, thus causing the price of XRP to rise.

Last, if the MVRV Long/Short difference (the difference between the average profit or loss of long-term holders and short-term holdings) is heading upward while the price remains largely sideways, it could signal that long-term holders are getting more confident and increasing their positions.

Long-term holders are frequently perceived as “steady” investors who are less inclined to sell their investments based on short-term price swings, which could contribute to an increase in price in the future. This has been the case with XRP in recent months.

After evaluating XRP using numerous metrics and technical analyses, Santiment analysts conclude that investing in XRP is similar to playing roulette. The price has been pretty stagnant for the past six months, and most retail traders on Binance seem bearish on XRP.

Long-term investors are optimistic, while short-term traders may be afraid to sell, so who knows what will happen? Maybe XRP will be the next big thing, or maybe it will fail miserably.

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