Crypto analytics platform Santiment is laying out the path forward for XRP after a court ruled that Ripple Labs’ automated, open-market XRP sales did not constitute a sale of securities.
In a new Santiment Insights blog post, the firm’s director of marketing, Brian Quinlivan, says that XRP, which rallied by over 70% after the court ruling to a 15-month high, possesses more upside potential amid reignited interest.
“Social dominance, which measures the percentage of discussions related to an asset compared to all top 100 market cap assets, indicates that XRP has shot up to 7.4% of ALL discussions. This is the highest level of discussion related to XRP since January 2021.
With such a high level of crowd recognition and FOMO (fear of missing out), there will inevitably be a cool-down period. But once traders stop paying attention and move their focus somewhere else, there is a high likelihood that there will be a second pump wave.”
Quinlivan also says that XRP whale and shark activity suggests bullishness for the fourth-largest crypto asset by market cap.
“Whale transactions on the XRP network have also hit their highest mark of 2023, and by a wide margin. Today, there have been 637 (and counting) transactions that have been valued at $100,000 or more. Clearly, the pump is being fueled by these large transactions…
If key whale and shark addresses are increasing their supply going into this pump, then it is a get foreshadowing signal that the pump may just be getting started, and it’s a sign of good things to come.”
Santiment’s director of marketing, however, warns that the XRP rally following the favorable court ruling could be an “overreaction.”
“With any piece of major positive news like what we’ve seen with the XRP community today, take the initial reaction to it with a grain of salt. Just like traders overreacted to the initial news of the U.S. Securities and Exchange Commission lawsuit last year, it won’t be surprising if this pump is a bit of an overreaction as well.”
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