- XRP holders rejoiced as prices advanced toward a key resistance zone.
- The on-chain metrics showed accumulation but also warned of potential selling pressure.
Ripple [XRP] saw a moderate price jump on the 20th of May. It gained 6.13% in a 24-hour window and during the same time, Bitcoin [BTC] climbed by 6.9% but saw a minor dip from $71.3k to $70.9.
Despite the gains, XRP continued to trade within a long-term range and faced a strong supply zone at $0.57-$0.585.
The Ethereum [ETH] ETF approval chances were upgraded to 75% from 25% by Eric Balchunas and saw the token’s prices rocket upward by 20% within a few hours.
The ETF analyst added that it took everyone by surprise.
This could lead to spot ETFs being filed for other cryptos. As one of the largest tokens in the market, XRP could be among the next cryptos that ETF issuers submit applications for.
Yet, the ongoing SEC-XRP case remains a hurdle for issuers.
Crypto markets are jumpy and investors need to watch out
In November 2023, XRP surged to $0.7503 because of fake reports that BlackRock had filed for a spot XRP ETF. A month before this event, false news of a Bitcoin spot ETF approval saw BTC prices surge by 10%.
In both cases, the strong gains were quickly reversed. Therefore, while XRP might see vast price pumps due to such reports or speculation, it will do little to embolden investor confidence.
Hence, AMBCrypto analyzed social and network metrics to understand if the token might see a genuine rally in the coming months.
Source: Santiment
The daily Weighted Sentiment has been positive for a good chunk of the past month. During this time, XRP made higher lows, but still struggled to form a long-term uptrend.
The Social Volume remained consistent over the past month but has reduced noticeably from March.
The Open Interest also rose higher to show speculators were gaining confidence in going long. Yet, the recovery has been slow compared to the fall in April.
Source: Santiment
The MVRV ratio showed that investors have been at a loss since the mid-March correction. It fell to -19% on the 14th of April and was at -3.83% at press time.
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Meanwhile, the mean coin age continued to trend higher to signal network-wide accumulation. Together, they signaled a buying opportunity.
Worryingly, the dormant circulation spiked during the recent rally. This suggested increased token movement, likely for selling. This might hinder the bulls’ attempts at a recovery and drag prices lower.
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