With its recent price increase, XRP created a ‘Ripple’ in the market.

According to Santiment’s 11 January tweet, Ripple [XRP], the third-largest cryptocurrency by market capitalisation, has seen a price increase in the last 24 hours. The 6.2% price increase is being attributed to increases in both social dominance and address activity.

This increase in XRP social media mentions and discussions can be interpreted as a bullish indicator, implying that more people were talking about the cryptocurrency, potentially driving up demand.

📈 #XRPNetwork is +6.2% the past 24 hours while the majority of #crypto has declined today. In part, this is due to a major pump in address activity over the past week. We have also seen a pattern of big social dominance spikes leading to $XRP price gains. https://t.co/Pw4BIVCew7 pic.twitter.com/1c0QRWXUC7

— Santiment (@santimentfeed) January 11, 2023

The public sentiment

Despite XRP’s growing social dominance, Santiment’s data also indicated a decline in sentiment towards the token within the crypto community. The weighted sentiment towards XRP observed a spike temporarily on 5 January, but continued to decline after 7 January.

The current negative weighted sentiment implied that the crypto community still had a negative outlook toward XRP.

Source: Santiment

Santiment’s data also showed that the daily active addresses of XRP increased from 27,228 to 148,000 in the last month. However, daily activity on the network could soon decline as the velocity of XRP fell. This indicated that the frequency with which XRP was being exchanged amongst addresses decreased over the last week.

Source: Santiment

Proceed with caution

Another bearish indicator was the fact that the number of new accounts created on XRP decreased, according to data from XRPSCAN. The number of new accounts being created daily decreased from 4,788 to 194 over the last month. This could be a sign that fewer people are interested in buying XRP or using it as an investment.

Despite all these negative indicators, XRP’s market capitalization dominance increased by 1.96% over the last week. During press time, XRP captured 2.07% of the overall crypto market. Coupled with that, the token’s volatility also decreased by 97% during the same period. This suggested that XRP’s prices were relatively stable.

Source: Messari

The decline in volatility could reward potential investors looking to buy a less risky asset. At press time, XRP was trading at $0.378 and had grown by 3.86% in the last 24 hours, according to CoinMarketCap.

Leave a Reply

Your email address will not be published. Required fields are marked *