Saturday December 3rd, Santiment, a data analytics platform, reported in a new report that the social dominance of the popular altcoin Ripple (XRP) has witnessed spikes in the last few days. What does this mean?
On-Chain Metrics in XRP
According to experts, the increase indicated in Santiment reports may cause short-term positive price movements of XRP in the near future. In addition, it was suggested that the possible price increase in the crypto currency could leave XRP vulnerable to a rapid sale. According to LunarCRUSH, another factor to consider is the growth in XRP’s social interest, which increased by 67.1% compared to last week. Despite the increase in interest and dominance, there was no serious positive development in the price of XRP.
However, the weighted sentiment metric of XRP has also fallen in the last few days, which in this case may be a sign that the general opinion of the crypto currency community towards XRP is negative. In addition, Ripple’s network growth has also witnessed a major decline. The mentioned factor shows that the number of addresses that perform XRP transfers has decreased for the first time.
“The Holders Can Wait a Long Time”
On the other hand, the popular altcoin XRP has observed a large increase in the metric, which indicates that the frequency of movement between cryptocurrency exchanges has Decelerated. One reason for the increase in transactions could be due to the ratio of XRP’s increased market capitalization to realized value (MVRV), it said. The increased MVRV ratio shows that if investors sell most of their existing XRP balances when the article is written, they will be able to make some profit.
In addition, Long/Short transactions, which are in the downward momentum, can be a sign that short-term holders will be able to make a profit if investors sell in the current market. Another warning of the experts for the long-term holders of XRP was that they may have to wait for a longer period of time in order to make some gains. The relative strength index (RSI) at the level of 44.13 may be an indicator that despite the momentary rise of XRP, the dominance is still in the sellers.
Are you following our Telegram address?