Cryptoanalytics platform Santiment is charting the way forward for XRP after a court ruled that Ripple Labs' automated sales of XRP on the open market did not constitute a sale of securities.
In a new Santiment Insights blog post, the company's chief marketing officer, Brian Quinlivan, says that XRP, which rallied by more than 70% after the court ruling to a 15-month high, possesses more upside potential amid reignited interest.
“Social dominance, which measures the percentage of discussions related to an asset compared to the top 100 assets by market cap, indicates that XRP has skyrocketed to 7.4% of ALL discussions. This is the highest level of discussion related to XRP since January 2021.
With such a high level of crowd recognition and FOMO (fear of missing out), there will inevitably be a cool down period. But once traders stop paying attention and shift their focus elsewhere, there is a high probability that there will be a second wave of pumping."
Quinlivan also says that XRP whale and shark activity suggests optimism for the fourth-largest crypto asset by market capitalization.
“Whale transactions on the XRP network also hit their all-time high of 2023, and by a wide margin. Today, there have been 637 (and counting) transactions that have been valued at $100,000 or more. Clearly, the pump is being driven by these large transactions...
If the key whale and shark directions are increasing their supply towards this pump, then it is an omen sign that the pump may be starting, and it is a sign of good things to come."
Santiment's chief marketing officer, however, cautions that XRP's rally following the favorable court ruling could be an "overreaction."
“With any major positive news like what we have seen today with the XRP community, take the initial reaction with a grain of salt. Just as traders overreacted to the initial news of the US Securities and Exchange Commission lawsuit last year, it won't be surprising if this bombshell is also an overreaction."
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