- XRP’s social dominance peaked, suggesting a rise to $0.70.
- Technical analysis suggested a drop to $0.50 before the price could bounce.
Ripple [XRP] has lost 9.45% of its value in the last 90 days. However, discussion about the token has reached its highest point since April 4, AMBCrypto confirmed.
At press time, Santiment showed that XRP’s social dominance was 1,947%, indicating that the number of XRP posts was higher compared to other cryptocurrencies.
One thing we’ve noticed is that social dominance seems to be correlate with the price. For example, during periods when the metric spikes, the price of the token increases.
An example was in December 2023 when XRP jumped to $0.67. Another was in March, when the price shot up to $0.72.
Judging from this past performance, it is likely that XRP has started a move that could push its price towards $0.70.
Source: Santiment
XRP needs to break $0.56 first
Moreover, AMBCrypto analyzed the potential of XRP from a technical point of view. One of the indicators taken into account was the exponential moving average (EMA).
On May 17, the 20 EMA (blue) crossed the 50 EMA (yellow). This is called a golden cross and a sign that the price could rise.
Validation of this trend could take XRP above the USD 0.56 resistance. If this is the case, the price of the cryptocurrency could rise and possibly reach $0.70.
However, the 4-hour chart showed that XRP was about to fall below both EMAs. If this happens, the bullish thesis may be invalidated.
The Moving Average Convergence Divergence (MACD) was also negative. The MACD shows bullish or bearish momentum. When positive, the indicator supports bullish momentum and a possible price increase.
On the other hand, the negative value of the indicator indicates that bulls do not yet have clear dominance over bears. As such, XRP could fall back to $0.50 support before bouncing towards $0.70.
Source: TradingView
What else is happening?
Let’s take a look at the sentiment surrounding the project. According to Santiment data, the weighted sentiment was -0.794.
Weighted Sentiment shows the unique social commentary (positive or negative) related to a token.
If the metric is positive, it means the broader view is optimistic. A negative reading suggests otherwise. So it seemed like only a few groups of participants had good things to say about XRP.
Source: Santiment
Should this continue for some time, the potential drop to $0.50 or lower could occur. However, if the value falls too low, it could pave the way for a recovery in XRP, which could validate its value towards $0.70.
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Furthermore, a look at the volume of the cryptocurrency showed that it has increased. If volume increases while price decreases, the price of XRP may begin to decline.
However, to validate a rise above the USD 0.56 resistance, increasing volume must support the bullish price action.