XRP’s recovery: Here are 2 metrics to keep an eye on this week
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| Last updated: January 30th, 2024
Below the $1 level, but headed that way… XRP was trading at the $0.88 level. The liquidity has increased consistently in the past two weeks. Following the altcoin dip, from a week ago, XRP’s market capitalization has increased. The altcoin has a market cap of $88.5 Billion, though the price continued to remain over 75% away from the ATH in 2018.
XRP Network Transactions | Source: Network Metrics
At this market capitalization, the number of transactions is at the average level following the peak hit in early 2021. Though XRP’s price has suffered an impact following the SEC vs Ripple proceedings declaring XRP a security, recovery above the $0.60 level was nearly dramatic. It fuels XRP’s long-term bullish narrative.
Short-term ROI Metrics | Source: Messari
Based on the above chart, short-term ROI for XRP is largely negative in 30 days, however, over 90 days it is over 95%. In the past week, there were 8174 transactions on the XRP network. At 46% circulation, trade volume is up on exchanges like Binance, Huobi Global, OKEx, ZG.com. XRP currently ranks 6, and is likely to rank in the top 5 following a price rally.
Transactions on XRP Network | Source: XRPCharts
Here are two factors that are likely to contribute to the rally.
- The increase in the number of transactions on the XRP network and
- An increase in liquidity
At 46% circulating supply, and 72.95 NVT ratio, XRP’s price rally is likely to be an extended one, with the increasing on-chain analysis, transactions. On-chain metrics and transactions support XRP’s bullish narrative.
Additionally, the increasing dominance of altcoins vs Bitcoin is another factor driving the price rally. Currently, there are over 15000 active addresses, XRP’s liquidity is leading the price rally. The social volume has dropped currently, it is a negative 12%. Increase in social volume in the following days this week is likely to signal an increase in price since the social volume and price are directly proportional in the case of XRP and most altcoins in the top 25, based on market capitalization.
XRP’s bullish narrative is supported by the altcoin resisting selling pressure across exchanges as well.
