article image

Arman Shirinyan

XRP is trending on both cryptocurrency market and social media, but Santiment has a warning for investors

According to the most recent on-chain data provided by Santiment, XRP is leading the weekend rally with a 15% price surge that allows the asset to break through $0.84 for the first time since Feb. 16.

But while the market and investors happily watch their portfolios grow, Santiment analytics suggests that it might be time to take profit because of the trendiness of the topic of XRP among the cryptocurrency community. The increased social attention quite often led to the reversal of the asset’s price on the market.

XRP chart
Source: TradingView

The correlation is most likely tied to a massive amount of XRP holders in the crypto community as the coin remained one of the most popular digital assets in the industry for the last few years. As the coin gains traction among crypto community members, a large number of users are most likely taking profits to recover some of their previous losses.

As the chart of assets by TradingView suggests, XRP has lost almost 60% of its value since its ATH, so most of the asset holders are likely holding the asset at a loss and selling it whenever they see buying power on the market.

The last four social volume spikes led to a strong price reversal for XRP on the market: the most recent spike, on Feb. 17, led to a 21% reversal during the week. Thanks to the progressive recovery on both financial and digital assets markets, the asset reached the local resistance of $0.84 and retraced back to $0.79.

The asset is currently moving in the rangebound formed since February and has as yet failed to break through it. The crypto market is currently facing an increase in buying power as the Relative Strength Index for XRP enters the uptrend zone.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *