XRP is trading below a critical resistance of $1.08 despite the overall crypto market flashing green and aiming for higher price action. The altcoin, cruising at a price of $1.07, has strengthened its position as the 6th-largest crypto by market cap. The good news however lies in its network appeal which is signaling promising signs that could further fuel its price action.
According to the crypto on-chain behavior analysis platform Santiment, the XRP network is witnessing interesting developments. The website focused its report on the basis of key metrics such as Social Volume, Network Growth, Daily Active Addresses [DAA], MVRD 7D.
How is XRP’s overall network health?
In April this year, Santiment’s Social volume peaked when XRP was trading at a record level, owing to the bull run. XRP was late to the party, thanks to the battle between the United States SEC and the blockchain firm Ripple which shooked the confidence of the market participants. A lot has changed since then.
The cryptocurrency asset’s price began to correct and so did the social volume, as illustrated by the Santiment graph below. Historically, the social volume figure climbing record highs tend to precede the formation of a local top and a subsequent decline. In short, the social volume generally peaks during the final stage of the rally.
The events that transpired six months ago depict room for further growth for XRP. Additionally, a damaging depreciation is highly unlikely to develop.
More upward potential?
With respect to Daily Active Address [DAA], the network appears to be in a strong position over the past few months. The metric has been on a constant upward trend since the late July plunge this year. As evidenced by Santiment’s Network Growth data, of late active address count has risen exponentially in a span of just two weeks. The report stated that the current spikes in the market participants regardless of the steady price action points to the deployment of actual users rather than speculators on the network.
Santiment also went on to add that a significant chunk of XRP’s Daily Active Addresses could probably originate from the increase in new participants as observed on its Network Growth metric. It is the formation of this sustained uptrend that demonstrated a healthy sign for the token’s future price prospects.
Finally, a similar sentiment was echoed by Market Value by Realised Value [MVRV] 7D which measures the holders’ short-term gain/loss. The data reveals that XRP is far from the danger zone where the formation of local top formation takes place. In a nutshell, the crypto-asset is poised for more gains.