- XRP’s social dominance spiked, suggesting a rise toward $0.70.
- Technical analysis suggested a decline to $0.50 before the price can bounce.
Ripple [XRP] has lost 9.45% of its value in the last 90 days. However, discussion about the token has reached the highest point since the 4th of April, AMBCrypto confirmed.
At press time Santiment showed that XRP’s social dominance was 1.947%, indicating that the number of XRP posts was more when put against other cryptocurrencies.
One thing we observed was that social dominance seems to correlate with the price. For instance, in periods when the metric spikes, the price of the token rallies.
An example was in December 2023 when XRP jumped to $0.67. Another one was in March as the price skyrocketed to $0.72.
Going by these past performances, it is likely that XRP has begun a move that could push the price to $0.70.
Source: Santiment
XRP needs to break $0.56 first
Furthermore, AMBCrypto analyzed XRP’s potential from a technical point of view. One of the indicators considered was the Exponential Moving Average (EMA).
On the 17th of May, the 20 EMA (blue) crossed over the 50 EMA (yellow). This is termed a golden cross, and a sign that the price could be set to increase.
Validation of this trend might send XRP above the $0.56 overhead resistance. If this is the case, the price of the cryptocurrency could rally and possibly key into $0.70.
However, the 4-hour chart showed that XRP was on the verge of falling below both EMAs. If this happens, the bullish thesis could be invalidated.
Also, the Moving Average Convergence Divergence (MACD) was negative. The MACD shows either bullish or bearish momentum. When positive, the indicator supports a bullish momentum and possible price increase.
On the other hand, the negative reading of the indicator suggests that bulls do not yet have a clear dominance over bears. As such, XRP could fall back to $0.50 support before it bounces in the $0.70 direction.
Source: TradingView
What else is happening?
Let’s look at the sentiment around the project. According to data from Santiment, the Weighted Sentiment was -0.794.
Weighted Sentiment shows the unique social commentary (either positive or negative) regarding a token.
If the metric is positive, it means that the broader view is optimistic. A negative reading suggests otherwise. Thus, it seemed that only a few sets of participants had good things to say about XRP.
Source: Santiment
Should this linger for some time, the potential decline to $0.50 or below could come to pass. However, if the reading drops too low, it could set the stage for XRP’s rebound, which could validate it toward $0.70.
Is your portfolio green? Check the XRP Profit Calculator
Furthermore, a look at the cryptocurrency’s volume showed that it has increased. If the volume increases while the price falls, XRP’s price might slip began.
However, to validate a rise above the $0.56 resistance, the increasing volume has to back the rising price action.
Credit: Source link