Altcoins
Why Is XRP Up Today? What to Expect as the Altcoin Decouples from Bitcoin
- Market sentiment around XRP has turned bullish, with its price increasing by 7% in 24 hours.
- In case of continued price increase, XRP could reach $0.69 in the coming weeks.
The entire cryptocurrency market has turned bearish lately, with Bitcoin [BTC] the graph also remains in the red. However, Ripple [XRP] decoupled from the rest, generating enthusiasm in the community.
Let’s take a closer look at why XRP is up today.
A bullish takeover
Bitcoin, the king of cryptocurrencies, has seen a slight correction over the past 24 hours. Meanwhile, XRP bulls have caught investors off guard as the altcoin has surged over 6% in the past seven days.
In fact, in the last 24 hours alone, the token has increased in value by over 7%. At the time of writing, XRP was trade at $0.6415 with a market cap of over $35 billion, making it the 6th largest crypto.
AMBCrypto’s analysis of Santiment data revealed that despite the slow price action, BTC’s weighted sentiment spiked on July 27.
However, XRP sentiment gained momentum on July 29, after which its price started to rise.
This means that the bullish sentiment around XRP started to increase even before the token’s price. Additionally, XRP’s social volume increased, reflecting an increase in its popularity.
Source: Santiment
Why is XRP up today?
AMBCrpto then looked at other datasets to find out what caused the token to decouple from the market. According to our analysis, XRP’s trading volume increased significantly while its price increased.
Typically, an increase in trading volume amid a price rally serves as a basis for the price to rise. Its network growth has also seen a spike, indicating that more new addresses have been created to transfer the token.
XRP’s MVRV ratio also skyrocketed, reaching a value of 19% at press time. However, this value was close to the July high. When the altcoin’s MVRV reached its July high, it quickly saw a correction.
Source: Santiment
Apart from this, Santiment has released a tweet on July 31, mentioning that the number of wallets holding at least 10,000 XRP has skyrocketed over the past five weeks, reflecting investors’ intent to accumulate.
Read Ripples [XRP] Price forecast 2024-25
The road ahead
AMBCrypto’s analysis of Hyblock Capital revealed that if the bulls continue to dominate, investors could soon see the token reach $0.66. A break above this level could see the token reach $0.69.
However, in case of a bearish trend reversal, XRP could drop to $0.62. If it goes even lower, its next support would be at $0.61.
Source: Hyblock Capital