The XRP price surged from $0.53 to $0.73 following Trump’s victory in the US elections and amid the broader market recovery.
However, the price faced rejection at $0.73, nearly matching the yearly high of around $0.74 seen in March.
Santiment recently provided a comprehensive update on the current state of Ripple’s community and XRP’s market dynamics.
Market Analysis Shows Mixed Signals
The recent price action shows promising signs, with XRP experiencing a 45% breakout over the past 8 days before hitting resistance. The Ripple’s token price has since been fluctuating around the $0.65 mark, after facing the above mentioned rejection at $0.73.
Moreover, Binance’s funding rate data reveals the highest long-versus-short ratio for XRP since March 31st. This extreme ratio could be a warning sign, as heavily skewed long positions often increase the risk of a market correction if momentum starts to fade.
XRP’s social dominance has spiked considerably, now accounting for over 4% of all cryptocurrency discussions. While this surge in social interest likely contributed to the recent price rally, historical patterns suggest reason for caution.
Previous social dominance spikes have served as reliable market indicators. The last two significant spikes showed interesting patterns – one marked a perfect top signal coinciding with a local price high, while the other indicated a market bottom, preceding a price recovery.
Read also: Top Analyst Reveals Why to Avoid These 8 Altcoins: XRP, Worldcoin (WLD) and More
The current combination of high social interest and elevated long positions suggests traders should remain vigilant. Breaking past the March high of $0.74 would require sustained momentum without excessive FOMO, while the heavy concentration of long positions could increase the risk of a pullback if market sentiment shifts.
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