Here’s What On-Chain Data Tells About The XRP Rally

XRP has seen a massive 67% gain during the last 24 hours. Here are some facts that on-chain data reveals about this price increase.

Several Indicators Are Up After XRP Rally

In its latest Insights post, on-chain analytics firm Emotion Let’s take a look at the underlying metrics related to XRP as the cryptocurrency has seen an extremely strong rally over the course of the past day.

This sharp increase in the asset’s value comes after Ripple’s victory in court as XRP was declared “not a security”. Immediately after the announcement, the coin managed to rise by almost 90%, but in the hours that followed, the asset suffered some losses.

Nonetheless, the cryptocurrency still managed to retain most of its gains as it is still up 67%. This increase has now made the asset the fourth largest in terms of market capitalization, as it has overtaken BNB.

After the rally, as the chart below shows, XRP’s “social dominance” saw a sharp increase towards the 7.4% mark.

Looks like the metric's value has spiked | Source: Santiment

Social dominance measures how social media discussion related to a given coin (which, in this case, is XRP) compares to the combined volume of conversation currently received by the top 100 assets by market cap. .

At the current value of the metric, 7.4% of all discussions related to these top 100 coins are coming from XRP alone. Such high interest among social media users is usually a sign of enthusiasm, which usually leads to a price correction. This may explain why the asset has declined since its initial boom.

In terms of whale activity, the network has naturally been active during this boom, as these mega-investors have made a significant number of transactions, as shown below.

The value of the metric seems to have been quite high recently | Source: Santiment

The number of whale transfers during the past day has crossed the mark of 637, the highest level seen in 2023. “Clearly these large transactions are fueling the pump,” Sentiment says.

Trading volume (the total amount of XRP being transacted on-chain) also registered a huge increase, which is not too surprising considering the high amount of whale activity that occurred during the past day.

The volume has seen a spike | Source: Santiment

The current level of trading volume is the highest it has been in nearly 10 months, reflecting the extraordinary activity the blockchain is seeing right now.

The analytics firm has also pointed out how sharks and whales of the cryptocurrency had been accumulating over the course of a few months, which led to the rally.

The sharks and whales have been constantly buying | Source: Santiment

“This group of wallets is essentially the best to understand how the ‘smart money’ is behaving,” Sentiment explains. “And they were showing confidence in the property for more than two months, even before today’s court decision.”

xrp price

At the time of writing, XRP is trading around $0.78, up 69% in the past week.

XRP's extraordinary rise during the past day | Source: XRPUSD on TradingView

Featured image from Kanchanara on Unsplash.com Charts from Tradingview.com Sentiment.net