Ripple: XRP Up 21%, Decouples from 'Altcoin' Rally

May 29, 2023

XRP has created a new all-time high feat on the address activity front. A recent Analysis by on-chain metrics platform Santiment revealed that the XRP network “has now had its 2nd & 3rd largest address activity spikes of all time these past 2 days.”

For context, an address is considered to be active when it becomes a direct participant in a successful transaction. So, the latest spike brings to light the refining network activity.

In the recent past, whenever such an incline has been noted, the price of the asset has risen. For example, in March, the network noted its largest-ever activity spike. In the following 10 days, the asset’s price inclined by 45%.

Also Read: Why Is XRP Surging by Over 8% Today?

XRP’s rally to be renewed?

XRP’s price has been rising over the past few days. On the day when the judge declared the production of Hinman’s documents, the price inclined by 8%. Then, on the heels of other positive developments and ‘wins’, the asset renewed its bullish streak. On Tuesday, May 30, XRP was yet again trading in green. In fact, it was the fourth largest gainer at press time, owing to its 4.5% pump.

Also Read: Ripple Buys Crypto Custody Firm Metaco for $250 Million

Here, it is worth noting that XRP has started decoupling from the broader Altcoin market, which is still plagued by weakness. Even though the asset has been trading in green, most other assets are trading borderline in red. As a result, the cumulative crypto market cap was down by 0.1% on the daily. In fact, Santiment also acknowledged that the rest of the market is not playing along. Specifically, it tweeted,

“A mild +4% decoupling has emerged between XRP & the Altcoin pack.”

Social sentiment associated with the asset is currently quite strong, for the Altcoin’s ticker has been trending on social platforms like Twitter. Data from LunarCrush further brought to light that XRP’s social mentions and dominance have risen by 30% each over the past week, supporting the narrative further.

Also, Read: Ripple Witnessed 4 Wins This Week: XRP Turns Bullish

Technical outlook

On the technical front, XRP has successfully managed to flip its resistance to support the 4-hour timeframe. As illustrated below, the $0.475 hurdle roadblocked the asset’s price from rallying since mid-May. However, things seem to shaping up in XRP’s favor, for the same has now been turned into support.

When compared to May 11’s low of $0.411, the asset is already up by 21%. In fact, there are six back-to-back green candles on XRP’s daily chart. Even though this is a positive takeaway, caution needs to be exercised parallelly, for the XRP market is gradually getting overheated. Indicators like the RSI are hovering in the overbought zone. This means the asset could briefly pull back over the short term, before registering another leg up.