- Altcoin’s social volume dropped, indicating a decline in popularity
- Technical indicators show that selling pressure on XRP has increased
XRP has registered a price drop over the past week – a bad sign for investors. Will this latest drop leave the token unable to compete with top coins like Bitcoin [BTC] And Ethereum [ETH]?
How is XRP affected?
CoinMarketCap’s data showed that XRP is down more than 6% over the past seven days. At the time of writing, the altcoin was trading at $2.15 with a market cap of over $123 billion, making it the fourth largest crypto. Here it seemed interesting to note that despite the price drop, market sentiment around the token had improved.
XRP’s weighted sentiment registered an increase in recent days, meaning bullish sentiment around the token rose. However, social volume declined: a sign of XRP’s declining popularity in the crypto market.
Source: Santiment
Continuing with the token…
As the price of XRP fell, EGRAG CRYPTO, a popular X-handle that posts updates related to blockchains, recently shared a tweetshowing the possibility of XRP tackling BTC and ETH in the coming days.
“As BTC’s dominance declines and ETH’s dominance steadily increases, XRP has the explosive potential to surpass both. Currently there is a dominance of 3.93% (above Fib 0.382). If XRP closes above Fib 0.5 (5.57%), we could see double-digit dominance!”
EGRAG CRYPTO’s tweet also mentioned that VRVP showed a void of over 4.30%, meaning less resistance and a smoother path to an all-time high (ATH) and beyond. The KABOOM Green Zone starts at Fib 0.50, which represents a big step forward!
AMBCrypto then assessed the token’s on-chain data to find out whether the token can dominate the top cryptos in the coming days. According to our analysis, after a sharp dip, the token’s MVRV ratio registered a slight increase.
An increase in the measure indicates that market capitalization is growing faster than realized capitalization. This means there is a greater incentive for people to sell into the market.
However, not everything worked in the token’s favor. For example, the token’s daily active addresses dropped last week, indicating declining network activity. This fact was further proven by XRP’s declining network growth, meaning fewer addresses were created to transfer the token within a given time frame.
Source: Santiment
The possibility of XRP dominating BTC and ETH seemed remote as the technical indicators were also in favor of the bears.
Read XRP’s price prediction 2024–2025
Finally, the MACD gained a bearish upper hand on the market. The Chaikin Money Flow (CMF) also registered a downward trend, indicating an increase in selling pressure, which could push the token’s price further down the charts.
Source: TradingView
