Warning signs of XLM local top soon as it decouples from XRP
- Emerging trends warns of possible XLM price drop.
- XLM decouples from XRP
- Assets covered: XLM
- Metrics used: Social volume, Sentiment balance consumed, Dev activity
XLM has popped up as #1 in our emerging trends, indicating a spike in increase XLM-related chatter around the crypto space. But being in the #1 position on emerging trends doesn't necessarily mean it's a good thing....
as most times, it tends to signal a drop in price/it's close to local top.
Let's take a quick look at other metrics to see what's going on.
With this week's run up to $0.062704 USD (+24% since Tuesday), we are seeing large spikes in social chatter around XLM. The last time we saw Social Volume at such levels was back in mid-Feb (near the top) and mid Jan (near the local top).
During each of these spikes, we can observe the crowd losing interest as Social Volume starts to drop drastically, and price start to fall soon after - possibly signalling a lack of new speculators to prop up the price.
With the spike in Social Volume, we are observing growing positive sentiment around XLM. Likewise, the last time we saw such confidence in XLM, it started to signal a top is coming.
XRP, where art thou?
It's hard to talk about XLM without mentioning its predecessor XRP. And... usually, it's the case where XRP price rallies first then comes XLM.
Things been rather different lately. Looks like XLM have decoupled from XRP's price action and went ahead without it.
Comparing both returns since Tuesday this week:
- XLM +24%
- XRP +6%
Could we see XRP moving next? Perhaps but... let's see what XLM price will be by next week, given its position in Emerging trends and spike in Social Volume.
Thanks for reading!
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