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The native coin of Ripple, XRP, is locked in a tug-of- war between a price that won’t spark and growing social media engagement. Online conversation presents an image of a bustling community, but the value of the token treads water, leaving investors wondering whether the excitement generates positive momentum.
Social Media Frenzy Fuels XRP Discussions
A recent tweet by crypto market intelligence tool Santiment revealed a spike in XRP-related conversation. The US Securities and Exchange Commission’s (SEC) recent posture on Ripple Labs’ forthcoming stablecoin, which the SEC regards as a “unregistered crypto asset,” could be responsible for this rising buzz.
🗣️ #Monero is being discussed at an abnormally high rate due to the announcement that #LocalMonero is sunsetting as governments continue cracking down on $XMR and other privacy focused assets.
🗣️#XRPLedger is also seeing a high rate of discussion due to $XRP price volatility,… pic.twitter.com/gaV3ywP2up
— Santiment (@santimentfeed) May 9, 2024
While the regulatory heat may have sparked conversation, it hasn’t translated to a price surge. In fact, XRP’s value dipped slightly in the past 24 hours.
Investors Accumulate Despite Price Stagnation
Fascinatingly, data from Santiment indicates investors may be accumulating XRP even with the poor price activity. The “Exchange Outflow” statistic of the platform shows a transfer of XRP away from exchanges, maybe towards private wallets, nevertheless substantial. This points to certain investors’ perhaps long-term optimistic attitude.
Ethereum's exchange outflow maintains steady uptrend. Source: Santiment
Technical Indicators Cast A Shadow
Not all indicators, though, point to good fortune. Popular cryptocurrency researcher Cryptoes observed on Twitter that XRP’s price is perilously close below its 21-day moving average, a technical indicator usually seen as a negative one.
XRP is now trading at $0.51. Chart: TradingView
Support Levels And The Downward Spiral
Should the bearish indicators be accurate, XRP can fall to its support level close to $0.50. A breach below this pivotal milestone might set off a further downpour sending the price down below $0.47. This possible drop fits another worrying trend: the Network Growth of XRP.
Santiment claims that over the past month the amount of fresh addresses generated for XRP has been dropping. This would suggest a declining user base, which calls into doubt XRP’s long-term acceptance.
The Road Ahead
Regarding XRP, the present state of affairs is mystery. On the one hand, the buzz on social media and investor accumulation show a project with committed following. Conversely, the technical signs and slowing down of network expansion cause questions regarding the immediate future of the cryptocurrency.
Featured image from Peapix, chart from TradingView
