On 3 December a tweet published by a crypto analytical firm name “Sentiment” made a staggering claim Ripple’s coin also known as XRP has a strong social presence within the crypto community.
The firm further added that despite the fact that XRP’s social acceptance has increased in recent days which can trigger the price hike, market sentiment towards Ripple’s [XRP] is still negative.
Social presence and investors’ trust are integral aspects of the cryptocurrency market and can help cryptocurrencies retain higher price levels.
All the world’s best-performing cryptocurrencies have a strong social presence. For example Bitcoin (BTC), Ethereum (ETHR), Solana (SOL), Dogecoin (DOGE), and all other famous cryptocurrencies have a strong social presence.
Social Presence is What Matters The Most
Experts do believe that the current hike in XRP’s social dominance will play a massive role in the cryptocurrency’s success as it will trigger the short-term price raise for XRP within a few weeks.
However, due to the negative market sentiment, the coin will not be able to maintain its price rise for too long. As a result sell pressure will be immensely high on XRP in case of any price hike.
Moreover, an internet platform LunarCrush pointed out that over the past week XRP’s social mentioning across the various online platforms reached 67.1%.
But the market still has had negative sentiment regarding XRP, and as the result, XRP’s network further shrunk last week.
But XRP’s moving speed across all the crypto exchanges has increased immensely.
XRP’s Potential to Generate Short Profits
Over the past few weeks, XRP’s MVRV ratio increased which is a clear indicator that in the near future XRP’s trade across all the cryptocurrency exchanges can increase dramatically.
Since the selling pressure will be higher on XRP, those who will be selling XRP will certainly gain lucrative profits.
According to XRP’s technical analysis, those investors who will own XRP for the short term will get instant profits. But those who are willing to buy XRP for a longer time frame have to wait much longer for any sort of gain.
Ripple’s XRP Price on December 3
As of December 3, XRP was priced at $0.390. However, XRP’s price has risen almost 19.3% since November 14th till now.
On 3 December 2022 XRP’s RSI was around 44.13, showing that cryptocurrency’s tilt was still with sellers.
Moreover, XRP’s CMF also experienced a surge at around 0.13. All these are indicators of the strong market position of XRP.
XRP is currently running bullish and its price is likely to increase if the coming few weeks. These bulls can help XRP to the $0.42 resistance level.
Any further rise above that level of resistance can help XRP to reach the $0.50 and$0.51 marks as well.
XRP’s Trade Volume
A closer look at Ripple’s XRP shows that cryptocurrency’s trade volume for the past 24 hours across all the blockchains is being recorded at around $900 million.
Moreover, it is important to know that after the collapse of FTX, the market became extremely volatile, but XRP’s trade volume has kept rising.
Even though on Monday Coinbase, the biggest crypto exchange in the U.S. publicly stated that it will soon withdraw its support for XRP.
This means that XRP will no longer be the part of self-custody wallet of Coinbase. The cryptocurrency exchange further clarified that the decision was finalized following the low activity of XRP on the Coinbase wallet.
XRP is not the only crypto coin that will no more be supported by Coinbase wallet. A series of other tokens were also removed from the Coinbase self-custody wallet.
That’s probably one of the biggest reasons that XRP’s market sentiment is negative. However, it has strong social dominance and charming social sentiment.
All those investors who are likely to invest in XRP short go for the short-term sell to maximize their profits to stay protected against the current market volatility.