- Buying pressure on XRP was high, while its price action was sluggish.
- Most metrics and indicators hinted at a price correction.
Ripple [XRP] has witnessed a rise in its social metrics of late, which reflects its popularity in the crypto space. But at the same time, the token’s price action remained concerning.
Will the rise in popularity be enough for XRP to wake up the bulls?
XRP: a topic of discussion
Santiment recently posted a tweet highlighting how XRP was being talked about on the market as it witnessed a high rate of discussion.
A possible reason for this could be the US Securities and Exchange Commission’s (SEC) recent statement. Notably, the SEC mentioned that Ripple Lab’s newly planned stablecoin qualifies as an “unregistered crypto asset.”
While the token’s social metrics increased, the same was not the case with its price, as its value dropped marginally in the last 24 hours.
According to CoinMarketCap, at the time of writing, the token was trading at $0.5203 with a market capitalization of over $28.7 billion, making it the seventh-largest crypto.
It was interesting to note that while the token’s price dropped, investors started to accumulate. AMBCrypto’s look at Santiment’s data revealed that XRP’s Exchange Outflow remained high.
Its Supply on Exchanges also dropped, further suggesting that buying pressure was high.
Source: Santiment
But there were other concerns for XRP as Cryptoes, a popular crypto analyst, pointed out in a tweet. As per the analysis, XRP’s price was sitting right at its 21-day moving average.
At press time, the token’s price had fallen below that level, which is a bearish signal.
Which way is XRP headed?
To see whether a further downfall is around the corner, AMBCrypto checked the token’s daily chart.
Our analysis revealed that the token’s Chaikin Money Flow (CMF) registered a massive dip in the last few days. On top of that, its Relative Strength Index (RSI) also moved southward.
These indicators suggested that the token’s price might continue to drop. If that happens, then XRP might plummet to its support level of near $0.50.
A further decline from that could result in XRP dropping to $0.47 in the coming days.
Source: TradingView
Realistic or not, here’s XRP market cap in BTC’s terms
Also, the token’s Network Growth has been on a declining trend for the last 30 days. This meant that fewer addresses were created to transfer the token last month.
However, investors’ confidence in XRP remained high, as its Weighted Sentiment was in the positive zone at press time.
Source: Santiment