Is Ripple Going Up or Down in the Near Term? On-Chain Metrics are Divided
The past few days have been rough for Ripple (XRP) after the cross-border payment blockchain cryptocurrency suffered a dip under the $0.3300 mark. However, the cryptocurrency appears to have regained a price recovery bias on Friday, as it printed a new seven-day peak near the $0.3800 barrier.
Santiment Reports Paint Bullish Picture for Ripple
Reports from Santiment suggest that Ripple is in for mixed price dynamics over the coming days. Firstly, a Santiment report showed that the positive sentiment around Ripple was well above other better-performing cryptocurrencies, such as Bitcoin (BTC) and Ethereum. This comes despite the prevailing legal drama against the US Securities and Exchange Commission. A recent tweet from the on-chain analytics platform read:
“Among top market cap assets in #crypto, those with the largest positive sentiment right now are #BinanceCoin, #Pancakeswap, #Theta, and #XRPNetwork.”
On-chain statistics showed that Ripple’s current Weighted Sentiment was representative of a bullish outlook, with a value of 2.1 — a level not seen in three months. This metric remained in the bearish territory through mid-August, despite Ripple holding above the $0.3500 mark. Interestingly, the cryptocurrency’s Weighted Sentiment flipped momentum on August 19, the same day it recorded a 10% crash to fall to its lowest point in August. This crash came due to a bearish sell-off in the broader market.
Meanwhile, the on-chain data provider also posted a chart some days ago showing that XRP whales are not taking any breaks. The report showed that whale transactions recorded a 3-month high this week, with Ripple recording about 452 transactions worth $100,000 or more within 8 hours.
Bearish On-Chain Metrics
While Santiment portrays a bullish near-term future for XRP, some on-chain metrics prove otherwise. For example, daily active addresses on the network have maintained a downward spiral since the beginning of August, indicating a significant outflow of investors from the network. This claim is supported by Ripple’s transaction volume, which has failed to show any meaningful spikes, remaining relatively constant throughout August.
Meanwhile, a Santiment chart showed that the development activity on the network was at notable lows following the August 18 - 19 price slump.
What Does Price Analysis Suggest?
XRP recorded a somewhat unexpected jump on Friday after the price leaped by over 5% to tap a new seven-day high at $0.3711. This rally comes as most of the crypto market maintained a quiet mood throughout the day.
However, it cannot be said that this jump was far-fetched, considering XRP was on a steady recovery all through the week, recording higher lows and higher highs. That said, Ripple needs to cross back over the June trendline to switch market bias. At that level, the price will be faced, once again, with the pivot price zone (highlighted in purple). A break into and above this zone would likely signal an end to the bear cycle.
XRP Statistics Data
XRP Current Price: $0.3600
XRP Market Cap: $17.8B
XRP Circulating Supply: 49.53B
XRP Total Supply: 99.98B
XRP Market Ranking: #7
This article should not be taken as a piece of financial advice. It is essential to conduct your research before making investment decisions.