According to Santiment, XRP is still “phased out” at its current price and therefore has room to grow
On-chain data from Santiment suggests that XRP remains “suppressed” at its present price and, therefore, has the potential to grow. Recent volatility in the crypto market caused short-term price extremes, pushing the XRP price to the brink of the low of $0.57.
In terms of on-chain analysis, Santiment’s “strong and oversold” indicates that XRP is showing signs of having an “undervalued” price relative to its fundamentals. XRP was up slightly at $ 0.83 at the time of publication.
When the price of an asset has decreased abruptly and to a level below where its true value resides, it is said to be oversold. This usually happens as a result of overreaction in the market or panic selling. Assets that have witnessed large decreases over a short period are often considered to be oversold in this instance.
XRP started trading at $ 0.21 this year after falling drastically to a low of $ 0.16 in December 2020 when the SEC announced its lawsuit against Ripple. According to the SEC lawsuit, Ripple began raising funds in 2013 by selling unregistered securities of digital assets known as XRP.
Since then, it has been a challenging road for the cross-border token as crypto exchanges have delisted the XRP token. Despite these setbacks, Ripple seems undeterred, highlighting the “significant growth and traction of ODL” in its Q3 report.
2021 saw significant partnerships as Ripple’s liquidity on demand (ODL) solutions extended to the Middle East. In November, Ripple announced its partnership with the Republic of Palau to explore the country’s first national digital currency using XRPL. The $ 250 million “Creators Fund” was launched to attract creators from NFT to XRP Ledger, which may result in the onboarding of new users.
Investors await a positive outcome on the XRP price in the aftermath of the SEC lawsuit, which Ripple CEO Brad Garlinghouse states would likely conclude by next year.