XRP on the Cusp of Breakout? Santiment Looks at On-Chain Metrics of Sixth-Largest Crypto Asset
Crypto market intelligence platform Santiment is looking at key on-chain metrics for XRP that are flashing healthy signals for the sixth-largest digital asset by market cap.
In a new edition of Insights, Santiment looks at XRP’s social volume metric and says discussions involving the sixth-largest crypto asset all over the internet have been pretty quiet even after the coin’s rise from about $0.85 in late September to its current price of $1.21.
“XRP’s social volume saw an uptick, but nothing too crazy like what we observed back in April, where [its] price was parabolic and everyone was just crazy over XRP.
This lack of interest from the crowd is healthy for now and more so when price keeps inching upwards and social volume remains low, suggesting perhaps the crowd are in disbelief.”
Though XRP’s number of social mentions is down, the firm says that its network has seen a massive uptick in daily active addresses since bottoming out in late July, indicating that investors are likely finding real-world use cases for the altcoin.
“This surge of users against a relatively quiet price action is suggesting that it’s likely not speculators but actual deployment of users on the network for whatever use-case there is out there at the moment…
A good part of XRP’s Daily Active Addresses is probably stemming from the increase in new participants as we can observe in the network growth metric. This sustained uptrend so far is generally a healthy sign for what’s to come.”
Santiment is also looking at the MVRV 7D metric, which can be calculated by dividing XRP’s market value by its realized value. According to the crypto insights firm, the metric suggests that XRP has more room to grow in the short term.
“XRP’s MVRV 7D which measures the short-term profit/loss of holders is showing that we still have a tiny room before we enter into the danger zone, where we usually see a local top forming (short-term).”
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Author: Daily Hodl Staff
