Ripple (XRP) price is up 20% from the recent local low recorded on May 11. The Ripple Ledger network appears to be attracting unprecedented levels of user activity. Will the bulls push for more gains after crossing the critical $0.50 resistance?
On May 30, Ripple (XRP) price crossed the critical $0.50 resistance for the first time since April 19. XRP had been on the uptrend since May 11, after rebounding from its recent low of $0.42. However, the ongoing rally went up a notch after network activity spiked by more than 2,600% on May 27.
With the social sentiment still trending negative, is there room for more gains?
XRP Network Activity Spikes 2,600%
This week, the XRP ledger network has recorded its second-largest volume of user activity of all time. Between May 26 and May 29, XRP Daily Active Addresses surged from 18,090 to 490,350.
Quite remarkably, this represents a 2,600% jump in daily user activity.
The Daily Active Addresses metric sums up the number of unique wallet addresses interacting on a network on a given day.
A persistent rise, as seen above, means increased demand for network services. Evidently, this has put some upward pressure on the price of XRP in the last few days.
Notably, March 19, 2023, was the last time XRP witnessed a similar spike in network activity. And within 10 days, the XRP price had increased by more than 42%.
Considering that XRP has gone one better this time, to maintain this level of network activity for 3 consecutive days, bullish stakeholders can anticipate more price gains in the coming weeks.
Despite the 20% price pump over the last 20 days and the recent spikes in user activity, the aggregate social perception surrounding the Ripple-issued coins is still largely negative.
The Weighted Sentiment, which evaluates the ratio of positive mentions to negatives, currently shows that many stakeholders are still pessimistic.
The chart below shows Weighted Sentiment has been trending upward since May 27. But at the close of May 29, the value still sat deep in the negative zone, around -0.3.
When Weighted Sentiment trends are below zero, as seen above, it signals a lot of stakeholders have not bought into the rally yet. Strategic investors could interpret this as meaning that the XRP price could make more gains before a euphoric peak.
In conclusion, other investors could FOMO if the XRP ledger maintains this level of network activity. Ultimately, this is likely to cause the XRP price rally to enter new gear in the coming days.
XRP Price Prediction: Up Next $0.60?
Most crypto investors that bought XRP within the past month are now holding 9% profits, according to Santiment‘s Market-Value to Realized-Value (MVRV) data.
The historical trading patterns show that the last time XRP built up this level of bullish momentum, investors held out for 26% gains before selling. This means that the XRP price could potentially edge close to $0.59 before facing significant resistance.
But for XRP to achieve that $0.60 price target, it has to first break beyond the sell-wall mounted by holders looking to book 10% profits at $0.51.
Conversely, the bears could still negate the bullish narrative if the XRP price unexpectedly drops below $0.45.
Nevertheless, many investors will likely offer bullish support at this level to avoid slipping into a net-loss position.
Otherwise, XRP could slip further toward the next significant support level at $0.40.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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