XRP, the sixth-largest cryptocurrency by market cap has witnessed a sudden spike in social volumes which isn’t new for the 6th ranked token by market cap. However, can XRP chart the much-needed recovery its HODLers long for?
After charting a 55% uptick in the second half of September, XRP was one of the few assets in the top 100 cryptos by market capitalization that managed to end the month in green.
From a price perspective, at press time, XRP noted 1.8% daily losses trading at $0.45. However, on-chain metrics fueled some optimism for XRP HODLers.
Riding on the social wave
XRP’s price has been pretty sensitive to the larger narrative around the coin on social media and news, especially due to the ongoing Ripple vs SEC case which fetches XRP the occasional pump in social volumes.
This time though, XRP’s high social volumes were accompanied by considerably high social mentions as XRP appeared to be trending once more.
Apart from high social volumes, an 8.67% uptick in the coin’s trade volumes was further indicative of higher retail interest in the token. XRP’s trade volumes at press time were up to $1.6 billion.
Interestingly, the token had witnessed a sustained increase in trade volumes throughout Sept. In fact, the coin’s trade volumes peaked at $7.80 billion on 23 Sept. charting a one-year high last seen in Sept. 2021.
Old XRP getting activated
XRP’s glorious run above the $0.5 key resistance was met with significant pressure from bears as the token saw a 15% pullback from the higher level oscillating at the $0.4507 level at press time.
Despite the 4.37% weekly and 1.8% daily losses as well as dwindling RSI, data from Santiment presented that XRP’s long-term MVRV was noting anomalies.
Interestingly, XRP’s short-term MVRV (1-day) noted a sharp uptick while MVRV ratio (365-day) and MVRV ratio (5-year) noted a downtick.
Lower MVRV values indicate a smaller degree of unrealized profit in the system which could either point towards undervaluation, or poor demand dynamics. At press time, while short-term recovery seemed plausible, on the long-term chart XRP’s demand dynamics were still relatively poor.
That said, a spike in Age consumed metric, which helps spot mid to long-term price direction reversals saw a major uptick on Oct. 2 highlighting that dormant tokens could be moving with the intention of pushing prices up.
Furthermore, with XRP’s velocity picking, it pointed toward a more vibrant network as transactions saw a rise.
While on-chain data for XRP presented some bullish momentum for the coin in the near term an invalidation of the thesis could lead to a pullback to the lower price level at the $0.39 mark from where XRP made a recovery on Sept 21.
For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.