After a long sluggish movement, XRP has finally returned to the spotlight with an impressive 40% rally over the last week and jumping to an 8-month high. The notable surge was triggered following the result of the recently concluded US presidential election.
Donald Trump’s victory bodes well for XRP and its community because of the several potential reforms promised in the crypto industry by the incoming president. Particularly, Trump disclosed that he would remove the SEC chair, Gary Gensler on his first day in office. The effect of this promise can now be seen in the recent price performance of XRP. Moreover, XRP’s surge is not the only factor that has signaled its comeback.
XRP Dominates Crypto Conversations on Social Media
Social media platforms including X, Binance Square, and CoinMarketCap Community, are some of the places where crypto conversations take place. The direction of these conversations sometimes triggers visible rallies for the token in question. According to recent data from Santiment, XRP has taken over 4% of all crypto-related conversations on these platforms. The community interest ignited after the coin jumped by 45% in the space of 8 days.
Read Also: XRP’s Surge Draws Interest Amid Broader Market Gains and Legal Speculation
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Source: Santiment/X
Following its recent rally, XRP is now changing hands at $0.66, actively pursuing the next target of $0.7. One important milestone for the XRP community to watch out for is the $0.74 mark. XRP last reached this level earlier this year in March. Santiment noted that for XRP to achieve this level, FOMO (fear of mission out) has to be kept at bay, and funding rates on large and decisive exchanges like Binance have to be considered.
Meanwhile, the trending coin has shown incredible strength in its chart trajectory. Notably, XRP has broken through several moving averages that position as support levels. Particularly, its 50 and 100-day moving averages show significant support between $0.55 and $0.57 respectively. Maintaining bullish optimism requires that XRP maintains its upward trajectory, which it could be able to do if it can hold above current levels. Meanwhile, all does not seem rosy for the coin.
XRP Selling Pressure Heightens
While the excitement for XRP and its prospect continues to brew, the short-term movement is at risk of downward pressure. Technically, its Price DAA (Daily Active Addresses) Divergence indicator is signifying sell for XRP. This is a result of a notable reduction in investor participation amid the ongoing rally which triggered a decline of 6% earlier today from a high of $0.72.
XRP now faces challenges of sustaining its gains as the Price DAA Divergence shows potential weakness in investors’ activities. If the participation remains low, XRP might be struck with selling pressure that could erase all its accumulated gains.
Source: Santiment
Meanwhile, at the time of writing, XRP’s market cap has surpassed $38 billion with an impressive 24-hour trading volume of $10.04 billion. XRP still occupies the #7 position in the global crypto market chart.
Read Also: Ripple vs SEC: Here is Why Ripple Will Not Promote XRP Like BTC Even With Security Clarity
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.