Ripple (XRP) price is up 20% from the local low recorded on May 11th. The Ripple Ledger network appears to be attracting unprecedented levels of user activity. Will the bulls push for more gains after crossing the $0.50 critical resistance?
On May 30, the price of Ripple (XRP) crossed the critical resistance of $0.50 for the first time since April 19. XRP has been in an upward trend since May 11, after bouncing back from a recent low of $0.42. However, the sustained rally has picked up significantly after network activity surged more than 2,600% on May 27.
With the negative trend of social sentiment continuing, is there room for further gains?
XRP Network Activity Increased by 2,600%
This week, the XRP ledger network recorded the second largest volume of user activity ever. Between May 26th and May 29th, daily active XRP addresses increased from 18,090 to 490,350.
Remarkably, this is a 2600% jump in daily user activity.
The Daily Active Addresses metric summarizes the number of unique wallet addresses interacting on the network on a given day.
The continued rise, as we have seen above, means an increase in the demand for network services. This has obviously put some upward pressure on the XRP price in the past few days.
Notably, March 19, 2023 was the last time XRP saw a similar spike in network activity. Within 10 days, the price of XRP increased by more than 42%.
Given that XRP has gotten better this time, to maintain this level of network activity for 3 consecutive days, bullish stakeholders can expect more price gains in the coming weeks.
Despite a 20% price hike over the last 20 days and a recent spike in user activity, the overall social perception surrounding the coins issued by XRP remains largely negative.
Weighted sentiment, which assesses the ratio of positive to negative signals, currently shows that many stakeholders remain pessimistic.
The chart below shows that the weighted sentiment has been trending higher since May 27th. But at the close of May 29, the value was still deep in negative territory, around -0.3.
When weighted sentiment trends are below zero, as we saw above, this indicates that a lot of shareholders haven’t bought into the rally yet. Strategic investors can interpret this to mean that the XRP price could make more gains before the euphoria peaks.
In conclusion, other investors may FOMO if the XRP ledger maintains this level of network activity. Ultimately, this is likely to cause the XRP price to enter a new gear in the coming days.
XRP Price Prediction: $0.60 Higher?
Historical trading patterns show that the last time XRP built this level of bullish momentum, investors held 26% before selling. This means that XRP price could approach $0.59 before it encounters a major resistance.
But for XRP to achieve this $0.60 price target, it must first break the sell barrier imposed by its holders looking to take a 10% profit at $0.51.
Conversely, the bullish narrative could still be invalidated by the bears if the XRP price unexpectedly drops below $0.45.
With that said, many investors are likely to offer upside support at this level to avoid slipping into a net loss position.
Otherwise, XRP could slide further towards the next important support level at $0.40.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.