XRP, the sixth-largest cryptocurrency by market capitalization, may be in for a massive rally following a recent decline in the social dominance of the crypto asset compared to that of Bitcoin (BTC).
It is no surprise that Bitcoin has captured crypto investors’ attention as a result of its growing value which has negatively affected the social dominance of other digital assets, including XRP, ETH, BNB, and ADA.
Read Also: Experts: XRP Isn’t an Easy Asset to Hold, Deserves a Spot Among Top 3 Crypto
XRP Social Dominance Dips
According to data on Santiment, a leading blockchain analytic platform, Bitcoin’s social dominance has been increasing. This development is attributed to the recent surge in the price of the top-ranked cryptocurrency. Notably, BTC is trading at around $31,000 at the time of writing, after the SEC-triggered dump to the $24,800 zone in the last days of June.
🗣️ With #Bitcoin's rise in price dominance in 2023, it's no surprise to see that greater attention is being paid to #crypto's #1 market cap asset. But keep an eye on $ETH, $ADA, $XRP, $BNB, and other assets that are seeing little attention by comparison. https://t.co/D2Ie9NtgWn pic.twitter.com/pvto19EnEA
— Santiment (@santimentfeed) July 3, 2023
XRP’s social dominance has been steadily declining after it reached a high of 6.94% on May 31. As revealed by Santiment, the altcoin’s social dominance rose in May after the XRP price staged a breakout above the $0.50 price mark. But since XRP entered a downward trajectory, the social dominance of the digital asset has nosedived to 0.48% at the time of writing. However, this development may bode well for XRP price in the coming weeks or months.
XRP Price Expectations: Can History Repeat Itself?
A look at the 2023 historical data of XRP shows that the digital asset often surges whenever its social dominance drops. Within February and March, the social dominance for XRP fell massively from 8.38% to 0.59%. What followed after the decline was a rally in the same month where the altcoin did hit a high of $0.5850 on March 29.
As a result of the upturn in price, crypto enthusiasts turned their attention to the asset, leading to another rise in social dominance. On March 28, XRP’s social dominance went from 0.59% to 3.98% before crashing below 1% in May, courtesy of a market correction that affected many crypto assets, including XRP.
Read Also: U.S. Faster Payment Council Points Up Ripple and XRP’s Cross-Border Payment Capacity
Again, this drop welcomed another XRP price rally which spanned from late May to June with XRP hitting $0.5658 on June 13. External interventions may have played a role in its upturn as the SEC vs. Ripple case saw the release of Hinman’s document as a positive move, leading to higher social dominance.
With XRP’s social dominance currently below 0.5%, many expect that history would repeat itself. In other words, XRP investors see green candles in the coming weeks. Recall that Egrag predicted that the asset could climb to $250, depending on the previous market cycle it follows.
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