Main navigation

XRP's Increased Network Activity Not Yet Followed By Price, Here's Why It Might Be Bullish

Advertisement
Wed, 27/10/2021 - 8:32
XRP's Increased Network Activity Not Yet Followed By Price, Here's Why It Might Be Bullish
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

With Ripple remaining in consolidation for the past two weeks, Santiment has provided on-chain data that shows a significant divergence between price action and network activity, which is usually considered a volatility signal.

Advertisement

The network activity indicators are usually strongly correlated with the price of an asset. With the rapid increase of the asset's value, traders and investors tend to move their funds more for various reasons, including selling on exchanges, payments or redistribution.

The same rule applies to XRP. On the Network Activity/Price chart, we can clearly witness the movement order between the two metrics. The higher the network activity is, the greater the chance of volatile movements on the trading pair.

Article image
Source: Santiment

While the metrics might be useful in determining whether the market is going to face a volatility increase or not, it cannot be considered a directional indicator since it does not signal whether an asset will move in one or another direction.

Ripple is currently going through a wide array of events that may or may not affect its price positively or negatively. Since the SEC's actions against the company, the value of the coin has tripled, a positive sign for both the Ripple community and the crypto community in general.

Related

At press time, XRP is trading at $1 with continuous consolidation in the $1-$1.20 range. Network activity currently sits at an average of 52,000 active addresses.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD