XRP Social Dominance Has Spiked While The Price Has Been Declining
According to data from the on-chain analytics firm , discussions around XRP have surged during the past day. The relevant indicator here is the “social volume,” which measures the total amount of unique social media text documents that are making mentions of a given cryptocurrency.
The social media text documents here refer to a collection of posts, threads, and other forms of text-based data sourced from major platforms like Twitter, Reddit, Telegram, and 4chan.The value of the metric seems to have been quite high in recent days | Source:As displayed in the above graph, the XRP social volume has registered some high values during the past day or so. This would suggest that discussions around the cryptocurrency have become elevated in this period.
In the chart, data for another indicator, “social dominance,” is also shown. This metric tells us what percentage of the combined social volume of the top 100 cryptocurrencies (by market cap) is being contributed by any individual coin.
Since this high focus on the asset has come as the price has been declining, it would appear likely that these discussions are occurring due to the investors feeling fearful.
Historically, markets have tended to move opposite to what the crowd is expecting, with the probability of such a reverse move going up as the investors assume a stronger opinion. So as a high amount of FUD is potentially going around among the XRP traders right now, the price may be able to benefit from this and experience a rebound.XRP Price
At the time of writing, XRP is trading around $0.47, down 2% in the last week.Looks like the asset has observed a decline recently | Source: