•Crypto analytics platform Santiment believes that XRP has the potential for a second pump wave, following its recent rise from a court ruling that it is not a security.
•Santiment’s director of marketing notes that whale and shark activity suggests bullishness for the fourth-largest crypto asset by market cap.
•However, Brian Quinlivan warns traders to take the initial reaction with a grain of salt as it could be an “overreaction”.
XRP Has High Likelihood of Second Pump
Crypto analytics platform Santiment believes that XRP has the potential for a second pump wave, following its recent rise from a court ruling that it is not a security. Social dominance indicates that XRP discussions have risen to their highest since January 2021, suggesting fear of missing out (FOMO) among traders. Whale and shark activity also suggests bullishness for the fourth-largest crypto asset by market cap.
Increased Discussion and Whale Activity
Santiment’s director of marketing, Brian Quinlivan, says social dominance which measures the percentage of discussions related to an asset compared to all top 100 market cap assets indicates that XRP has shot up to 7.4% of ALL discussions – the highest level since January 2021. Whale transactions on the XRP network have also hit their highest mark in 2023 with 637 (and counting) transactions valued at $100,000 or more fueling this pump.
Caveat: Initial Reaction May Be Overreaction
Quinlivan does warn traders to take any initial reaction with a grain of salt as it could be an “overreaction” just like what happened when news first broke about U.S Securities and Exchange Commission lawsuit last year against Ripple Labs Inc..
Conclusion: Potential Upside With Risk
In conclusion, there is potential upside in investing in XRP but investors should be aware of both increasing discussion around this crypto asset as well as possible overreactions due to news events surrounding it before making decisions about investing in it.
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