• Crypto analytics platform Santiment predicts XRP will experience a second pump after the court ruled that Ripple Labs’ automated, open-market XRP sales did not constitute a sale of securities.
• Social dominance and whale activity suggest bullishness for the fourth-largest crypto asset by market cap.
• Santiment’s director of marketing warns that the XRP rally following the favorable court ruling could be an “overreaction”.
XRP Predicted to Have Second Pump
Crypto analytics platform Santiment is predicting that XRP, which rallied by over 70% after the court ruled that Ripple Labs’ automated, open-market XRP sales did not constitute a sale of securities, has more upside potential amid reignited interest. Social dominance and whale activity suggest bullishness for the fourth-largest crypto asset by market cap.
Social Dominance Indicates High FOMO
Santiment Insights blog post states that 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. This is said to be the highest level of discussion related to XRP since January 2021 and with such high levels of crowd recognition and FOMO (fear of missing out), there will inevitably be a cool-down period but once traders stop paying attention and move their focus somewhere else, there is a high likelihood that there will be a second pump wave.
Whale Transactions Hit Highest Mark
Whale transactions on the XRP network have also hit their highest mark according to Santiment with 637 (and counting) transactions valued at $100,000 or more fueling this pump. If key whale and shark addresses are increasing their supply going into this pump then it serves as a signifying signal for good things to come according to Quinlivan from Santiment’s Insights team.
Example Of Overreaction Cited
Santiment’s director of marketing cautions traders not to take initial reactions too seriously as it won’t be surprising if this pump is an overreaction just like when traders responded too quickly when news broke about U.S Securities & Exchange Commission’s lawsuit against Ripple last year as well.
Conclusion: Take Initial Reactions With Grain Of Salt
In conclusion, Brian Quinlivan from Santiment suggests taking initial reactions with caution as they can often lead one in the wrong direction when assessing opportunities for investment or revenue generation within cryptocurrency markets like those involving XRP tokens today – even with major positive news coming out about them such as what we’ve seen today!