105 Interactions, 2 Today
XRP has been trading above $1 for the majority of this month, and with the alt valued at $1.17 after weekly gains of close to 13 percent, its daily fall of 2.5 percent at the time of writing was almost concerning.
While XRP’s growth appeared to be reasonable, the sixth-ranked alt’s long-term price trajectory in comparison to the larger market appeared to be slow. Nonetheless, there were signs of some historical moves in the works at the time of writing, which could cause the alt’s price to rise.
High gains coming up?
With the Ripple vs SEC fiasco going on for almost a year, XRP’s price has struggled to keep up. The alt has been unable to bridge its fair value gap, let alone get close to its ATH at $3.31 made in January 2018. For XRP the real question remained whether it can make a move above $1.5 anytime soon.
Luckily for XRP holders, on the price front, XRP had a fair chance of hitting $1.50 in Q4 after painting a bullish crossover between its 20-day and 50-day EMA.
The last time a similar golden cross occurred on August 10, XRP’s price saw a close to 80% jump. Another instance when the same happened was in February this year when the alt noted an almost 200% hike. A similar rally could follow this time too, taking the altcoin above $1.5 provided XRP’s metrics hold up.
With the altcoin market looking dull and most of the top alts consolidating, it was notable at the time of writing that XRP was reaping higher ROIs on a shorter time frame than Cardano and Solana. Furthermore, XRP’s annualised standard deviation of daily returns (volatility) held up better over time.
Furthermore, the alt has recently been much less risky, as its Sharpe ratio has held up better than most top alt’s. Notably, Cardano and Solana both had negative Sharpe ratios, whereas XRP had a significant uptick on October 7, 2021.
Aside from that, its Daily Active Addresses had finally exploded after being on an upward trend since late July. Furthermore, XRP whales appeared to be accumulating, with the percentage of total stablecoin supply held by whales with more than 5 million USD sitting close to its ATH after May. This accumulation could provide a good cushion for the price of XRP in the event of a drop.
Overall, metrics for XRP remained gleaming, and network growth reached new highs in tandem with XRP’s announcement of the Proof of Payments protocol (xPoP) in the near future.
All of this could contribute to network growth and, as a result, price growth for XRP. However, with the price of XRP falling by 5% in the last 12 hours, metrics needed to hold for the alt to rally.