XRP - Is something brewing?
Assets covered: Ripple (XRP)
Metrics used: Price, Network Growth, Daily Active Addresses (DAA), MVRV 7D, Network Growth, Social Volume
Retail's favourite altcoin Ripple is seeing some interesting on-chain activity, let's take a quick look at what's going on.
XRP's price action been pretty decent since bottoming out in late September - making higher highs and higher lows along the way.
It currently is attempting to break out and stay above the resistance zone of $1.08s.
The uptick in trading volume is an encouraging one as this is what we want to see as price goes up.
XRP's Social Volume saw an uptick but nothing too crazy like what we observed back in April, where Price was parabolic and everyone was just crazy over XRP.
This lack of interest from the crowd is healthy for now and more so when price keeps inching upwards and social volume remains low, suggesting perhaps the crowd are in disbelief. It's not until the late stage of a rally (similar to April), that we see majority of the crowd getting in.
Daily Active Addresses
XRP's Network health is looking pretty good over the past few months. Daily Active Addresses have been on a uptrend since bottoming out in late July and recently exploded. This surge of users against a relatively quiet price action is suggesting that it's likely not speculators but actual deployment of users on the network for whatever use-case there is out there at the moment.
A good part of XRP's Daily Active Addresses is probably stemming from the increase in new participants as we can observe in the Network Growth metric. This sustained uptrend so far is generally a healthy sign for what's to come.
XRP's MVRV 7D which measures the short-term profit/loss of holders is showing that we still have a tiny room before we enter into the danger zone, where we usually see a local top forming (short-term).