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Ripple (XRP) price has stagnated within the $0.47 – $0.49 range for the past week. But, as the media buzz surrounding XRP cools, the underlying economic activity on the network has intensified. Is XRP set for a price breakout this week?
The media buzz surrounding XRP has cooled off significantly since mid-June. However, on-chain data reveals that XRP Network Usage has grown astronomically in the last few days.
Based on historical trading patterns, here’s how XRP could climb several places on the top gainers’ list in the coming weeks.
XRP dominated the crypto-media headlines in early June, especially after hitting a new 2023 peak on June 7. But ever since, the buzz seems to have cooled off considerably.
Santiment’s Social Volume data below shows that XRP mentions have dropped by more than 98% since June 7.
The Social Volume metric evaluates the number of times a blockchain project is mentioned across relevant crypto media channels.
When it drops significantly, as seen above, it indicates that the price might have reached a local bottom. Strategic investors often seek to enter the market when the sentiment among the current holders is at a relatively low ebb.
Hence, potential investors looking to XRP buy at a low could begin to ape-in in the coming weeks.
Soaring Network Activity Could Spark Another XRP Price Breakout
The relative drop in media coverage has seen XRP fall slightly lower on investors’ radars. But on-chain data shows that XRP holders have intensified trading activity over the last few days.
Since June 23, XRP Ledger network has continually exceeded 135,000 Daily Active Users. Notably, this year, it surpassed 100,000 on only ten occasions.
The chart below shows that XRP price soared by 40% and 15% on both occasions where active addresses saw a large daily increase.
Daily Active Addresses evaluates daily economic activity on a blockchain network by summing up the number of unique wallet addresses carrying out transactions.
As seen above, despite the XRP price stagnating below $0.50, the underlying economic activity on the network has continued to rise. If the momentum is sustained, this positive divergence could soon trigger a price breakout in the coming weeks.
XRP Price Prediction: Potential Breakout Toward $0.60?
Considering the factors identified above, XRP price looks set to clear to reach a new 2023 peak of $0.60 in the coming weeks.
With prices currently sitting at $0.48, the MVRV ratio shows that most crypto investors that bought XRP within the last 30 days still hold 4% losses.
Considering the historical trends, investors are likely to hold until they break even before they start selling around $0.50. And if the bullish whales can scale that resistance, XRP price could edge closer toward a new 2023 peak of $0.60.
Conversely, the bears could negate the potential price analysis if XRP unexpectedly drops below $0.45. Nevertheless, a large number of investors will likely offer bullish support at that zone to avoid sinking into 10% losses.
Otherwise, XRP could drop further toward the next significant support level at $0.40.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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