XRP Price Targets $0.70 as Rare Trading Signal Emerges

Key Insights:

• Ripple (XRP) price consolidated around $0.60 on Friday, Jan 12, after a sharp rejection from the $0.62 area. 
• XRP Mean Coin Age has formed a rare 12% uptick pattern since the turn of the year, signaling weakening selling pressure among the bears. 
• The XRP Bollinger band trends highlight key resistance and support points to look out for in the coming days. 

Ripple (XRP) price is trading at $0.60 in the morning trading hours GMT on Friday, Jan 12, marking a sharp 3% retracement from the weekly top of $0.62 recorded on Jan 11. On-chain analysis examines how a shift in trading disposition among current XRP holders could impact XRP price action in the days ahead. 

Can XRP bulls capitalize on weakening selling pressure to push for a $0.70 retest? 

XRP Selling Pressure Has Weakened Since the Turn of the Year

XRP price has closed above the $0.60 for two consecutive trading days as the bulls look to erase losses from the Jan 3 liquidations. However, while the sixth-largest cryptocurrency has struggled to attract a steady demand, on-chain data trends reveal that the selling pressure has waned among current holders. 

Santiment’s Mean Coin Age metric tracks the number of days recently-traded tokens had stayed in their previous addresses. This serves as a proxy for measuring the degree selling pressure among existing holders. 

The chart below shows that XRP Mean Coin Age has recorded a noticeable 12% increase from 25.50 to 28.30 between Jan 1 and Jan 11. 

Rising values of Mean Coin Age, as observed, is a signal that existing investors are holding their coin longer. As the portion of long-term holders increases during a price consolidation, it leads to a decline in selling pressure. 

In effect, this rise in the Mean Coin Age makes a compelling case for XRP price to enter a breakout when the market demand improves. 

XRP Price Forecast: The $0.70 Target Remains in Focus

Based on the vital on-chain signal analyzed above, there has been a significant drop in selling pressure across the XRP ecosystem since the start of 2024. With increased market demand, this puts XRP price in prime position for a potential upswing toward $0.70. 

In the daily timeframe, Bollinger Band technical indicators also confirm this bullish outlook. It currently shows that with XRP currently trading at $0.60, it has sustained its momentum above the middle-band (SMA). This alignment suggests the bulls are still in firm control.  

However, for the bulls to validate the $0.70 XRP price prediction, they must first scale the initial resistance sell-wall around the upper Bolllinger band at $0.66. If the bears selling pressure continues to weaken, XRP price could smash that resistance and head toward $0.70 as predicted.  

Conversely, the XRP bears could invalidate this bullish stance if the force a downswing below $0.50 territory. But as seen above, the bulls will likely mount a support buy-wall at the lower Bollinger Band of $0.55 and avert significant losses.