Ripple
XRP price bounces – Can it maintain the momentum
Posted:
| Last updated: February 6th, 2024
Journalist
- Despite a drop in network activity, XRP’s daily chart turned green.
- Market indicators and sentiment around the token looked bullish.
XRP caught investors off guard in the last 24 hours as its price rallied while the others kept suffering. The token followed the king of cryptos and Ethereum’s [ETH] price movement as the chart turned bullish, but will the trend last?
XRP is following Ethereum!
The last week was not in investors’ favor as the market condition remained bearish.
AMBCrypto reported earlier how XRP’s network activity dropped last week. To be precise, XRP’s daily active addresses fell, as did its transaction count.
However, things changed in the last few hours as cryptos, along with Bitcoin and Ethereum, painted their charts green. XRP was also not left behind.
According to CoinMarketCap, XRP was up by more than 3% in the last 24 hours alone. At the time of writing, the token was trading at $0.5288 with a market capitalization of over $28 billion, making it the sixth largest crypto.
Since the token’s price gained upward momentum in the last few hours, AMBCrypto planned to take a look at its social metrics.
An analysis of Santiment’s data revealed that XRP’s social dominance spiked sharply on the 27th of January 2024. Thanks to the price uptick, bullish sentiment around the token also surged, which was evident from the rise in its weighted sentiment.
Source: Santiment
A look at the blockhain’s metrics revealed that whale activity around the token was high as its number of whale transactions increased last week.
The price uptick also allowed its MVRV ratio to move up, indicating that the possibility of a further price uptrend was likely. Nonetheless, XRP’s velocity dropped last week. This meant that XRP was used less often in transactions within a set time frame.
Source: Santiment
Will the uptrend last?
To analyze whether the uptrend would last, AMBCrypto checked XRP’s daily chart.
We found that the token’s price rebounded from the lower limit of Bollinger bands, suggesting a further uptrend. Its MACD also displayed the possibility of a bullish crossover. Apart from that, other indicators also looked pretty bullish.
Read XRP’s Price Prediction 2024–25
For instance, the Money Flow Index (MFI) registered an uptick. Additionally, the Chaikin Money Flow (CMF) also followed a similar trend as it too went up.
These indicators, along with market sentiment, indicated that the possibility of a continued uptrend was high.
Source: TradingView
