XRP - A Massively Surging Cryptocurrency: What On-Chain Data Reveals
In the past 24 hours, XRP has experienced a massive surge of 67%. Here are some facts revealed by on-chain data about this price increase.
Several indicators have risen after the XRP rally
In its latest insight post, on-chain analytics company Santiment examined the underlying metrics related to XRP as the cryptocurrency saw an extremely strong surge in the past day.
This rapid increase in the asset's value is a result of Ripple's victory in court, as XRP was declared "not a security". Immediately after the announcement, the coin managed to rise by about 90%, but since then, the asset has suffered some losses.
Nevertheless, the cryptocurrency has managed to hold on to the majority of its previous gains as it is still up by 67%. This surge has made the asset the fourth largest in terms of market capitalization, surpassing BNB.
After the rally, XRP's "social dominance" experienced a strong increase towards the 7.4% mark, as shown in the graph below.
(Source: Santiment)
Social dominance measures how discussions on social media relate to a specific coin (in this case, XRP) compared to the overall volume of discussions currently being held about the top 100 assets by market capitalization.
At the current value of the metric, 7.4% of all discussions related to these top 100 coins come solely from XRP. Such a high interest from social media users is usually a sign of euphoria, which often leads to a price correction. This could explain why the asset has experienced a setback since the initial surge.
As for whale activity, the network has naturally been active during this surge, as these large investors have conducted a large number of transactions, as shown below.
(Source: Santiment)
The number of whale transfers has exceeded 637 in the past day, which represents the highest value observed in 2023. "The pump is clearly fueled by these large transactions," notes Santiment.
Trading volume (the total amount of XRP being traded on-chain) has also seen a strong increase, which is not too surprising given the high whale activity in the past day.
(Source: Santiment)
The current trading volume is as high as it has been in about ten months, further highlighting the exceptional activity being observed on the blockchain.
The analytics company also highlighted how the cryptocurrency's sharks and whales had been accumulating in the months leading up to this rally.
(Source: Santiment)
"This group of wallets is essentially the one to watch to understand how 'smart money' behaves," explains Santiment. "And they have already shown confidence in the asset for over two months, even before today's court ruling."
XRP Price
At the time of writing this article, XRP is trading at around $0.78, representing a 69% increase in the past week.
(Source: XRPUSD on TradingView)
Overall, the surge in XRP's price and the accompanying on-chain data reveal the excitement and interest surrounding the cryptocurrency. While some corrections are expected, XRP continues to be an asset of interest for investors and traders alike.
