Why XRP may be ready to overturn long-standing nosedive – Crypto News – Crypto News
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Why XRP may be ready to overturn long-standing nosedive Why XRP may be ready to overturn long-standing nosedive

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Why XRP may be ready to overturn long-standing nosedive – Crypto News

Published

3 years ago

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  • XRP’s social dominance rose, indicating signs of an upcoming recovery.
  • Other on-chain data revealed that the price rise may 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 analytical 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).

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 coin. However, as time passed, it became glaring that the outcome remained 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 worrying is 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.

XRP network growth and social volume

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 were to happen sooner.

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