Here’s What On-Chain Data Reveals About XRP Rally

Keshav Verma

1 year ago

4 mins read

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XRP has observed a massive 67% rally during the past 24 hours. Here are some facts on-chain data reveals about this price surge.

Several Indicators Have Surged Following The XRP Rally

In its latest insight post, the on-chain analytics firm Santiment has looked into the underlying metrics related to XRP as the cryptocurrency has seen an extremely sharp surge during the last day.

This rapid growth in the asset’s value has come following Ripple’s victory in court as XRP has been declared “not a security.” Immediately after the announcement, the coin had managed to rise by around 90%, but in the hours since then, the asset has taken some hit.

Nonetheless, the cryptocurrency has still managed to hold onto the majority of its gains so far, as it’s still up 67%. This rise has now made the asset the fourth largest in the space in terms of market cap, as it has leapfrogged past BNB.

Following the rally, the “social dominance” of XRP saw a sharp surge toward the 7.4% mark, as the below chart displays.

Looks like the metric's value has spiked | Source: Santiment

Social dominance measures how the discussions on social media related to any given coin (which, in this case, is XRP) compare against the combined amount of talk the top 100 assets by market cap are receiving currently.

At the current value of the metric, 7.4% of all discussions related to these top 100 coins are coming from XRP alone. Such a high amount of interest among social media users is generally a sign of euphoria, which usually leads to a correction in the price. This may explain why the asset has taken a hit since the initial jump.

In terms of whale activity, the network has naturally been active during this surge, as these humongous investors have made a large number of transactions, as shown below.

The value of the metric seems to have been quite high recently | Source: Santiment

The number of whale transfers has crossed the 637 mark during the past day, which is the highest level observed in 2023. “Clearly the pump is being fueled by these large transactions,” notes Santiment.

The trading volume (the total amount of XRP being transacted on the chain) has also registered a steep increase, which isn’t too surprising considering the high amount of whale activity that has occurred during the past day.

The volume has seen a spike | Source: Santiment

The current levels of the trading volume are the highest that they have been in around 10 months, further showcasing the extraordinary activity that the blockchain is observing right now.

The analytics firm has also pointed out how the sharks and whales of the cryptocurrency had been accumulating during the couple of months that have led to this rally.

The sharks and whales have been constantly buying | Source: Santiment

“This group of wallets is essentially the one best to watch to understand how ‘smart money’ is behaving,” explains Santiment. “And they had been showing confidence in the asset for over two months now, even prior to today’s court ruling.”

XRP Price

At the time of writing, XRP is trading around $0.78, up 69% in the last week.

XRP's extraordinary rise during the past day | Source: XRPUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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