XRP: Analyzing what growth in active address could mean for long-term holders
Despite the uncertainty that plagues the future of XRP as a result of the legal tussle with the Securities and Exchange Commission (SEC), during intraday trading hours on 30 June, it performed better than most altcoins. While most altcoins recorded a decline in price during the trading session yesterday (30 June), the price of XRP lodged some gains.
As per data from Santiment, on 27 June, the index for the unique addresses interacting on the network exceeded 200k for the first time since February 2020. While such an increment is usually indicative of a price rally, let’s take a closer look at the general performance of XRP in the last seven days.
A ‘Ripple’ing decline
Seven days ago, data from Santiment showed that the price of XRP was pegged at $0.37. However, exchanging hands at $0.3139 at the time of writing, the price of the coin declined by 16% in the last seven days. Similarly, within this window period, its market capitalization saw a drop from $17.63 billion to $15.17 billion.
Trading at its January 2021 levels, the XRP token has been steadily declining since May 2021. Marking an all-time high of $3.30 on 4 Jan 2018, the altcoin is 90.46% shy of touching that high once again.
According to data from CoinMarketCap, in the last 24 hours, the price of XRP stood at a 4% loss. However, trading volume rallied by over 45%. The Relative Strength Index (RSI) at the time of writing was 37.96 indicating increased selling pressure. Also in a downward trend at press time, the Money Flow Index (MFI) for the token was 47.16.
Head with caution
As per data provided by Santiment, XRP hit a high of 200k daily active addresses that transacted the alt on 26 June. However, this number took on a downward spiral since then. At 7,969 during press time, the number of daily active addresses has declined by over 90% in about five days.
Similarly, on a social front, the altcoin embarked on a decline since 27 May. After marking a high of 1.46% in social dominance on 27 May, over the last three days, this metric has dropped by 47%.
At press time, this metric was spotted at 0.76%. The social volume also registered a high of 828 on 27 May. Since then, it suffered an 86% decline.
Interestingly, while the daily unique addresses transacting the XRP coin dropped steadily, the number of new addresses created on the network increased in the last seven days. At 1,790 during press time, this has grown by 25% in the last week. Similarly, the transaction volume for the token saw a 116% growth in the last five days.