New data taken from one of the biggest exchanges suggests that investors are hodling XRP.
According to the Block data report, users of eToro exchanges have been buying XRP more than any other coin. Over 50% of users are buying XRP with Bitcoin (BTC) coming next with 35%.
Is the XRP buying spree a sign that the third-largest token is getting ready for some explosive action?
In most exchanges Bitcoin is the most bought and traded coin. With the popularity and added adoption, some coins might surpass Bitcoin signaling change in trend and price action.
In the case of buying, this signals that there are bullish sentiments and positive price action is expected. When there is more selling, this is a bearish signal which means that traders are dumping.
For XRP in this case, this is a positive signal. It is a sign that investors are buying up Ripple in anticipation of a change in trend.
At the current price, $0.18, XRP is hugely undervalued. Its current price is more than 80% below all-time highs and still well below its year high.
In terms of return on investment, buying at the current price offers a huge payday when prices begin to climb.
Bullish Triggers For XRP To Rally?
Some who have participated in the debate why Ripple is being bought by so many investors have given different reasons. One of the more popular reasons is the fact that Ripple has low fees.
While right, it does not explain the rapid change. Ripple fees have always been low and hence it does not offer the best explanation for the surprise surge in demand.
Amore possible reason is best explained by a prominent analyst. he says that XRP could rise by more than 30% soon. Analyst and trader, Loma, noted that in the next two months, XRP will gain more than 30%.
It is clear that traders have been accumulating since XRP dropped below $0.20. Now it seems as it approaches a breakout of this bear trend, FOMO is at all-time high and investors are flocking.