Several Indicators Have Surged Following The XRP Rally
In its latest insight post, the on-chain analytics firm has looked into the underlying metrics related to XRP as the cryptocurrency has seen an extremely sharp surge during the last day.This rapid growth in the asset’s value has come following Ripple’s victory in court as XRP has been declared “not a security.” Immediately after the announcement, the coin had managed to rise by around 90%, but in the hours since then, the asset has taken some hit.
Nonetheless, the cryptocurrency has still managed to hold onto the majority of its gains so far, as it’s still up 67%. This rise has now made the asset the fourth largest in the space in terms of market cap, as it has leapfrogged past BNB.Following the rally, the “social dominance” of XRP saw a sharp surge toward the 7.4% mark, as the below chart displays.
Looks like the metric's value has spiked | Source:Social dominance measures how the discussions on social media related to any given coin (which, in this case, is XRP) compare against the combined amount of talk the top 100 assets by market cap are receiving currently. At the current value of the metric, 7.4% of all discussions related to these top 100 coins are coming from XRP alone. Such a high amount of interest among social media users is generally a sign of euphoria, which usually leads to a correction in the price. This may explain why the asset has taken a hit since the initial jump. In terms of whale activity, the network has naturally been active during this surge, as these humongous investors have made a large number of transactions, as shown below.
The value of the metric seems to have been quite high recently | Source:The number of whale transfers has crossed the 637 mark during the past day, which is the highest level observed in 2023. “Clearly the pump is being fueled by these large transactions,” notes Santiment. The trading volume (the total amount of XRP being transacted on the chain) has also registered a steep increase, which isn’t too surprising considering the high amount of whale activity that has occurred during the past day.
The volume has seen a spike | Source:The current levels of the trading volume are the highest that they have been in around 10 months, further showcasing the extraordinary activity that the blockchain is observing right now. The analytics firm has also pointed out how the sharks and whales of the cryptocurrency had been accumulating during the couple of months that have led to this rally.
The sharks and whales have been constantly buying | Source:“This group of wallets is essentially the one best to watch to understand how ‘smart money’ is behaving,” explains Santiment. “And they had been showing confidence in the asset for over two months now, even prior to today’s court ruling.”
XRP Price
At the time of writing, XRP is trading around $0.78, up 69% in the last week.
XRP's extraordinary rise during the past day | Source:
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net