Ripple （XRP） has recorded gains over the past week, recovering from previous lows. The recent price rally has been driven by positive market sentiment and increased transaction volumes.
Points
- Ripple （XRP） price has rallied by 20% in the past week.
- SEC canceled a meeting with Ripple, triggering price volatility.
- XRP’s ratio of daily transaction volume in profit to loss is 2.
- On-chain metrics suggest declining demand, despite recent price gains.
- XRP’s Elder-Ray Index indicates potential short-term bullish control.
Ripple （XRP） holders have seen notable gains over the past week, as the altcoin defied expectations and rose in value. This positive trend follows the abrupt cancellation of a meeting between the US Securities and Exchange Commission （SEC） and Ripple, which initially caused a slight dip in XRP’s price. However, the token quickly rebounded, with its price rallying by 20% since then.
An assessment of XRP’s ratio of daily transaction volume in profit to loss （using a seven-day moving average） shows that token holders have experienced more profits than losses in the past week. As of now, the metric’s value stands at 2, indicating a volume of profitable transactions exceeding loss-making ones. This is generally a bullish signal and suggests positive market sentiment.
Despite these gains, on-chain metrics reveal a gradual decline in demand backing XRP’s current rally. The negative Price Daily Active Address （DAA） Divergence, currently at -82.05%, indicates that XRP’s price movement is significantly outpacing the average daily trading activity. This negative divergence suggests that the rally might not be sustainable without a corresponding increase in network activity.
XRP’s Elder-Ray Index, which measures the strength of buyers and sellers in the market, currently returns green histogram bars, suggesting bullish control in the short term. With the Elder-Ray Index at 0.08, buyer power is dominant, indicating a positive bias toward the altcoin.
If the bulls maintain control, the demand backing XRP’s price rally may increase, potentially driving the altcoin to a multi-month high of $0.66. However, if selling pressure mounts, XRP’s price could drop to around $0.56.