Ripple
Why XRP may be ready to overturn long-standing nosedive
Posted:
| Last updated: February 6th, 2024
Journalist
- XRP’s social dominance rose, indicating signs of an upcoming recovery.
- Other on-chain data revealed that the price rise might need more than a social hike.
Ripple [XRP], has been mired in a prolonged period of decline, and unable to recover substantially from the fall. However, emerging market trends suggest that XRP may be on the cusp of overturning its long-standing nosedive.
How much are 1,10,100 XRPs worth today?
For one, Santiment, the on-chain analytic platform, reported that XRP’s social dominance increased significantly in the early hours of 10 July.
Taking out the FUD
Santiment, noted that an increase in discussion around an asset, coupled with a falling price historically points to a possible price recovery. Lately, XRP has experienced a great amount of Fear, Uncertainty, and Doubt (FUD).
?️ #XRPNetwork has seen an uptick in discussion in Monday’s early hours. Generally, when traders are increasing discussions of an asset while its price has been declining, it increases the probability of a price rise to cancel out #FUD & greedy #shorts. https://t.co/nMgmfe25Tw pic.twitter.com/cc2REyl2pQ
— Santiment (@santimentfeed) July 10, 2023
And this could be linked to the inconsistencies in the final outcome of Ripple’s regulatory problems with the SEC. At one point, the XRP community was almost sure that a judgment was near and would be in Ripple’s favor.
This resulted in a rally for the token. However, as time passed, it became glaring that the outcome remains uncertain. As a result, XRP’s price action drifted away from its uptrend. However, traders may need to lower hopes of a quick rebound.
One reason for this is the XRP volume. At the time of writing, XRP’s volume was 578.54 million. Despite there being an increase from the previous day, it did not seem solid enough to push for an uptrend.
On another end, XRP’s 24-hour active addresses have been disappointing. Active addresses show the number of unique addresses involved in transactions daily.
When the metric increases, it suggests that interaction and speculation around a token has increased. But the decrease in XRP active addresses did not imply that. Rather, it means that participation with deposits and withdrawals was far from impressive.
Source: Santiment
Falling traction could hinder…
Another aspect of XRP that has been wearying was its network growth. This metric serves as a measure of user adoption and traction gained by a project.
At the time of writing, XRP’s network growth was down to 354. This implies that the number of new addresses being created on the network was not encouraging. Particularly, new addresses were also restraining participation in transactions.
But unlike social dominance, XRP’s social volume did not spike. Like social dominance, the social volume is built on top of social commentary.
Read Ripple’s [XRP] Price Prediction 2023-2024
However, it differs from the former in the sense that it considers the number of search texts related to an asset. Therefore, the decrease in social volume implies that messages and searches connected to XRP were not close to their peak.
Source: Santiment
In conclusion, the chances of an XRP resurgence remain very obvious. However, the token might need a positive change in other metrics discussed if the price rise was to happen sooner.
