XRP price prediction: Ripple, the sixth-largest cryptocurrency by market cap, has witnessed a sudden spike in social volumes which isn’t new for the 6th ranked token by market cap. However, can XRP chart the much-needed recovery its HODLers long for?
Updated Oct. 6, 15:00 UTC: At press time, after Ripple’s aggressive reply to the SEC, XRP price noted a 2.18% rise, trading at $0.49. On the weekly price window, XRP price is up by a staggering 14%. The $0.50 mark still acted as a crucial resistance level. While daily RSI noted a healthy rise, short-term RSI (1-hour) presented signs of overheating and a return from the overbought zone.
After charting a 55% uptick in the second half of September, XRP price was one of the few assets in the top 100 cryptos by market capitalization that managed to end the month in green.
Riding on the social wave
XRP price prediciton has been pretty sensitive to the larger narrative on social media and Ripple news, especially due to the ongoing Ripple vs SEC case which fetches XRP the occasional pump in social volumes.
This time though, XRP’s high social volumes were accompanied by considerably high social mentions as Ripple appeared to be trending once more.
Apart from high social volumes, an 8.67% uptick in the XRP trade volumes was further indicative of higher retail interest in the token. XRP trade volumes at press time were up to $1.6 billion.
Interestingly, Ripple had witnessed a sustained increase in trade volumes throughout Sept. In fact, XRP trade volumes peaked at $7.80 billion on 23 Sept. charting a one-year high last seen in Sept. 2021.
XRP Price Prediction: Old coins getting activated
XRP price glorious run above the $0.50 key resistance was met with significant pressure from bears as the token saw a 15% pullback from the higher level oscillating at the $0.45 level at press time.
Despite the 4.37% weekly and 1.8% daily losses as well as dwindling RSI, data from Santiment presented that XRP long-term MVRV was noting anomalies.
Interestingly, XRP short-term MVRV (1-day) noted a sharp uptick while MVRV ratio (365-day) and MVRV ratio (5-year) noted a downtick.
Lower MVRV values indicate a smaller degree of unrealized profit in the system which could either point towards undervaluation, or poor demand dynamics. At press time, while short-term recovery seemed plausible, on the long-term chart XRP price demand dynamics were still relatively poor.
That said, a spike in Age consumed metric, which helps spot mid to long-term price direction reversals saw a major uptick on Oct. 2 highlighting that dormant tokens could be moving with the intention of pushing prices up.
Furthermore, with XRP price velocity picking, it pointed toward a more vibrant network as transactions saw a rise.
While on-chain data for XRP price presented some bullish momentum for the coin in the near term an invalidation of the thesis could lead to a pullback to the lower price level at the $0.39 mark from where XRP made a recovery on Sept 21.