-
- Ripple’s price has surged past the crucial $0.50 mark for the first time since April 19, and its network activity has spiked by an unprecedented 2,600%.
- Despite the recent price surge and increased user activity, the social sentiment surrounding XRP remains predominantly negative, indicating potential for further gains.
XRP Witnesses a Stellar Price Performance
Ripple’s XRP token has exhibited a commendable upward trend, marking a 20% increase from its recent trough on May 11. The $0.50 milestone was surpassed on May 30, a level not seen since April 19, igniting speculation about the next price level. The uptrend commenced on May 11, recovering from a low of $0.42, and escalated following an extraordinary 2,600% surge in network activity on May 27.
This raises the question: Can the bullish trend continue despite the currently unfavorable social sentiment?
A 2,600% Surge in XRP Network Activity
The XRP ledger network has experienced its second highest user activity this week, with Daily Active Addresses jumping from 18,090 to 490,350 between May 26 and May 29, translating to a 2,600% increase in daily user activity. The Daily Active Addresses metric encapsulates the unique wallet addresses engaging with the network on any given day. This surge indicates heightened demand for network services and has seemingly contributed to the XRP’s recent price increase.
It’s worth noting that a similar spike in network activity on March 19, 2023, led to a more than 42% price hike within ten days.
Skepticism Among Stakeholders Persists
Despite the price surge of 20% over the last 20 days and the recent jump in user activity, the overall social sentiment for Ripple’s tokens remains largely negative. The Weighted Sentiment, which assesses the ratio of positive to negative mentions, suggests a significant proportion of stakeholders remain skeptical. The trend has shown a slight positive trend since May 27, but as of May 29, it remained in the negative zone at around -0.30.
Will XRP Reach the $0.60 Mark?
According to Santiment’s Market-Value to Realized-Value (MVRV) data, crypto investors who purchased XRP within the last month are currently enjoying a 9% profit. Previous trading patterns indicate that when XRP gains this level of bullish momentum, investors usually anticipate 26% gains before selling, suggesting that XRP could approach $0.59 before encountering significant resistance.
However, for XRP to reach the $0.60 target, it needs to overcome the selling pressure from holders aiming to realize a 10% profit at $0.51. Conversely, bearish investors could disrupt this bullish narrative if the XRP price unexpectedly falls below $0.45. Regardless, many investors are expected to provide bullish support at this level to prevent a transition into a net-loss position. If not, XRP may slide towards the next substantial support level at $0.40.