XRP has experienced a decline in price over the past week, which may raise concerns among investors. Will this recent drop hinder the token’s ability to compete with leading cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH]?
Impact on XRP
Recent data from CoinMarketCap indicates that XRP has dropped by more than 6% in the last seven days. Currently, the altcoin is valued at $2.15 with a market cap exceeding $123 billion, positioning it as the 4th largest cryptocurrency. Despite the price decrease, there has been an improvement in market sentiment towards the token.
While XRP’s weighted sentiment has seen an increase in positivity recently, there has been a decrease in its social volume, suggesting a waning popularity in the crypto sphere.
Future Prospects for the Token
Even as XRP’s price saw a decline, a well-known crypto influencer, EGRAG CRYPTO, hinted at the potential for XRP to surpass BTC and ETH in the near future through a recent tweet.
“With BTC dominance on the decline and ETH’s dominance steadily rising, XRP has the potential to outshine both. Currently holding a dominance of 3.93% (above Fib 0.382), a closure above Fib 0.5 (5.57%) could pave the way for double-digit dominance in the future!”
EGRAG CRYPTO’s tweet also highlighted the VRVP indicating a less resistant path above 4.30%, suggesting a smoother journey towards an all-time high. The KABOOM Green Zone initiation at Fib 0.50 signals a significant movement on the horizon.
Further analysis by CryptoCrypto delved into XRP’s on-chain data to assess its potential to dominate the crypto market. Following a significant drop, the token’s MVRV ratio showed a slight uptick.
An uptick in this metric suggests that the market cap is growing faster than the realized cap, potentially leading to increased selling activity.
However, not all indicators favored XRP’s dominance over BTC and ETH. For instance, the token witnessed a decrease in daily active addresses last week, indicating a decline in network activity. This was further evidenced by the reduced network growth, implying a decrease in the creation of addresses for XRP transactions within a specified timeframe.
Despite speculations, the likelihood of XRP surpassing BTC and ETH appeared slim as technical indicators favored bearish trends.
Finally, the MACD signaled a bearish sentiment prevailing in the market, while the Chaikin Money Flow (CMF) showed a decline, suggesting an increase in selling pressure that could drive XRP’s price further down.