How XRP created a ‘Ripple’ in the market with its latest price surge
- XRP prices surge due to social dominance and address activity.
- Mixed indicators, including a decline in sentiment and activity, suggest an uncertain future for XRP going forward.
Ripple [XRP], the third-largest cryptocurrency by market capitalization, witnessed a surge in prices over the last 24 hours, according to an 11 January tweet by Santiment. The spike, which saw prices increase by 6.2%, is being attributed to spikes in both social dominance and address activity.
Read Ripple’s [XRP] Price Prediction 2023-2024
This spike in social media mentions and discussions regarding XRP can be seen as a bullish indicator, suggesting that more and more people were talking about the cryptocurrency and potentially driving up demand.
? #XRPNetwork is +6.2% the past 24 hours while the majority of #crypto has declined today. In part, this is due to a major pump in address activity over the past week. We have also seen a pattern of big social dominance spikes leading to $XRP price gains. https://t.co/Pw4BIVCew7 pic.twitter.com/1c0QRWXUC7
— Santiment (@santimentfeed) January 11, 2023
The public sentiment
Despite XRP’s growing social dominance, Santiment’s data also indicated a decline in sentiment towards the token within the crypto community. The weighted sentiment towards XRP observed a spike temporarily on 5 January, but continued to decline after 7 January.
The current negative weighted sentiment implied that the crypto community still had a negative outlook toward XRP.
Santiment’s data also showed that the daily active addresses of XRP increased from 27,228 to 148,000 in the last month. However, daily activity on the network could soon decline as the velocity of XRP fell. This indicated that the frequency with which XRP was being exchanged amongst addresses decreased over the last week.
Proceed with caution
Another bearish indicator was the fact that the number of new accounts created on XRP decreased, according to data from XRPSCAN. The number of new accounts being created daily decreased from 4,788 to 194 over the last month. This could be a sign that fewer people are interested in buying XRP or using it as an investment.
A 6.89x hike on the cards if XRP hits ETH’s market cap?
Despite all these negative indicators, XRP’s market capitalization dominance increased by 1.96% over the last week. During press time, XRP captured 2.07% of the overall crypto market. Coupled with that, the token’s volatility also decreased by 97% during the same period. This suggested that XRP’s prices were relatively stable.
The decline in volatility could reward potential investors looking to buy a less risky asset. At press time, XRP was trading at $0.378 and had grown by 3.86% in the last 24 hours, according to CoinMarketCap.