While media attention on XRP has noticeably decreased since mid-June, on-chain data indicates that XRP Network Usage has experienced a tremendous surge in recent days. Considering past trading trends, it is possible for XRP to climb several positions on the list of top gainers in the coming weeks.
Significant Decrease in XRP Media Attention
In early June, XRP dominated crypto-related news, particularly after reaching a new peak for 2023 on June 7. However, since then, the hype surrounding XRP has significantly diminished. According to Santiment’s Social Volume data, XRP mentions have decreased by over 98% since June 7.
The Social Volume metric measures how frequently a blockchain project is mentioned through relevant crypto media channels. A significant drop in this metric, as shown above, suggests that the price may have hit a local low. Strategic investors often take advantage of the market when current holders’ sentiment is relatively low.
Consequently, prospective investors who wish to buy XRP at a low price may consider entering the market in the coming weeks.
Emerging Surge in Network Activity May Trigger XRP Price Surge
Although media coverage of XRP has declined, investor attention on the cryptocurrency has also slightly decreased. However, on-chain data demonstrates that XRP holders have increased their trading activity in recent days.
Since June 23, the XRP Ledger network has consistently surpassed 135,000 Daily Active Users. Notably, this year, it has only exceeded 100,000 on ten separate occasions.
The chart below illustrates that on two occasions where there was a significant increase in daily active addresses, XRP price increased by 40% and 15%, respectively.
Daily Active Addresses measures daily economic activity on a blockchain network by calculating the total number of unique wallet addresses involved in transactions.
As demonstrated above, despite XRP’s price remaining below $0.50, the underlying economic activity on the network has continued to rise. If this momentum continues, it could soon trigger a price breakout in the coming weeks.
Is XRP Poised for a Price Breakout of $0.60 or More?
Based on the factors outlined above, it appears that XRP’s price is on track to surge and reach a new 2023 high of $0.60 in the coming weeks.
Currently valued at $0.48, the MVRV ratio indicates that most crypto investors who purchased XRP within the last 30 days are still experiencing a 4% loss.
Historically, investors tend to hold onto their investments until they break even, which is likely to occur around the $0.50 mark. If bullish whales can overcome this resistance, XRP’s price could surge closer to the anticipated 2023 peak of $0.60.
However, if XRP unexpectedly drops below $0.45, the bears could undermine the projected price analysis. Nonetheless, many investors are expected to provide bullish support at this level to avoid incurring losses of up to 10%.
Alternatively, XRP’s price could plummet further towards the next critical support level at $0.40.