XRP’s on-chain data has shown some intriguing network divergences that point towards a bullish scenario, leading data platform Santiment noted.
These key metrics such as whale addresses, MVRV 30 days, Weighted Sentiment, etc have recorded some interesting movements. Let’s delve deeper.
The XRP Network has some intriguing network divergences pointing to strong bullish cases. Our community post discusses whale addresses accumulating rapidly, traders continuing to short, and a significant long/short on the verge of being crossed.
In in terms of price, XRP has been in a downward trend since 2021 and its value has hovered in the range of $0.28 and $0.54 for the past six months.
But, according to Santiment, the downtrend might be a part of a larger upward trajectory that could potentially complete a triangle formation.
“Right now, the price is at the bottom of this triangle, which some investors may see as a good opportunity with potential for both low risk and high reward”, the report noted.
On whales’ activity, the cohort of investors who own between 1 million and 10 million XRP have raised their holdings by 25% over the past six months, increasing the total to 4.09 billion XRP.
This level of accumulation is often seen at market bottoms.
The MVRV 30 day for the asset, which gauges short-term traders’ gains or losses, showed that these traders are currently suffering on average losses of -7%. As a result, they might be reluctant to offload their coins at a loss, which might push up the price of XRP.
Finally, the Weighted Sentiment metric depicted over the previous two months, there has been a general unfavorable sentiment regarding XRP. Still, the price has not dropped.
“Investing In XRP Is Like A Game of Roulette”
This according to the data aggregator signifies that sellers could be “exhausted,” i.e fewer and fewer sellers willing to sell at current prices.
During these situations, the price of an asset can increase despite the bearish sentiment.
Therefore, investing in XRP is almost akin to playing roulette, the platform concluded. For the previous six months, the price has remained largely unchanged. Long-term investors appear optimistic, though, and short-term traders may be reluctant to sell.
Moreover, the token’s price can also receive a boost from the soon-to-be concluded battle between Ripple vs SEC lawsuit as many crypto onlookers believe the blockchain firm stands a good chance of winning the lawsuit this year.