XRP is trending on both cryptocurrency market and social media, but Santiment has a warning for investors
According to the latest channel data provided by SanimentXRP leads the weekend rally with a 15% price surge that allows the asset to cross $0.84 for the first time since Feb. 16.
But while the market and investors happily watch their portfolios grow, Santiment analytics suggests that it might be time to take profit because of the trendiness of the topic of XRP among the cryptocurrency community. The increased social attention quite often led to the reversal of the asset’s price on the market.
The correlation most likely has to do with a massive amount of XRP holdings in the crypto community, as the coin has remained one of the most popular digital assets in the industry over the past few years. As the coin gains traction among members of the crypto community, a large number of users are most likely taking profits to recoup some of their previous losses.
As the chart of assets by TradingView suggests, XRP has lost almost 60% of its value since its ATH, so most of the asset holders are likely holding the asset at a loss and selling it whenever they see buying power on the market.
The last four peaks in social volume have resulted in a strong reversal in XRP prices in the market: the most recent peak, on February 17, resulted in a 21% reversal during the week. Thanks to the gradual recovery in the financial and digital asset markets, the asset reached the local resistance of $0.84 and fell back to $0.79.
The asset is currently moving in the rangebound formed since February and has as yet failed to break through it. The crypto market is currently facing an increase in buying power as the Relative Strength Index for XRP enters the uptrend zone.
