By George Ward
Lately, the Ripple community and analysts have been scrutinizing data, seeking insights into the potential trajectory of XRP, its native token. One of the reasons for the optimism is the SEC’s drop of charges against the blockchain firm’s chief executive, Brad Garlinghouse.
However, three other metrics strongly indicate an imminent XRP price rally.
Significant Spike In Transaction Volume
One of the most notable features among these XRP metrics is a noteworthy surge in the token’s real volume, a sharp uptick in trading activity on a specific date. They are often a result of renewed investor interest, potentially fueled by insider knowledge, strategic partnerships, or regulatory advancements.
When a substantial price change doesn’t accompany a surge in volume, it suggests that an underlying price movement is imminent.
Fluctuating Market Cap
XRP’s market cap underwent a dynamic cycle; it experienced a sharp decline and transitioned into a consolidation phase before embarking on a bullish uptrend. This trajectory suggests a market correction in response to external influences or speculative activities.
However, the subsequent stabilization implies that the asset discovered its “true” value and positioned itself for an upward trajectory. The rebound following the consolidation phase further reinforced the narrative of an impending positive price movement.
Daily Chart Price Analysis
A closer look at the daily price chart for XRP reveals that the asset has demonstrated multiple higher lows, indicating a bullish sentiment amidst current market conditions. Furthermore, the subtle upward trend following a period of stability could serve as an early indicator of a more substantial rally.
Meanwhile, XRP’s recent performance history hasn’t been impressive. Despite positive developments in the SEC case, XRP has lagged behind its peers.
On-Chain Activity Reveals Millions Of XRP In Motion
Meanwhile, there is an unusual spike in whale activity in the XRP ecosystem, with millions of this digital currency observed moving on-chain over the last 24 hours. Crypto insights platform Whale Alert reports two significant whale movements.
The largest, involving 50 million XRP tokens, shifted from the Crypto.com exchange to an undisclosed wallet. In the second notable movement, An unidentified wallet transferred 26.71 million XRP tokens to Bitstamp.
However, Whale Alert explains that these transactions serve different purposes. While the transfer from an unknown wallet to Bitstamp suggests a potential sell-off, the movement from Crypto.com could be linked to safekeeping or potentially over-the-counter (OTC) transactions, which are typically conducted off-chain.
Furthermore, the XRP sent to Bitstamp could be for various passive-earning products on the trading platform. Notably, XRP is becoming popular across platforms for its high growth potential.
Market Insights And XRP’s Performance
However, some industry analysts interpret these whale transfers as a potential signal of an impending sell-off. Nevertheless, XRP remains in positive territory, registering a 2.7% increase over the past day, and trades at $0.575 at the time of writing, according to Coingecko data.
This price growth is accompanied by a 53.56% surge in circulating supply, underscoring XRP’s status as a highly sought-after token in the current market. While corrections are a natural occurrence, especially after a positive October, the on-chain data analysis indicates that XRP could be gearing up for more substantial gains soon. However, other market factors would also affect its price action.