Santiment Makes A Bullish Case For XRP, Declares It Crypto Pick For January
Santiment touts XRP as the crypto to watch in January.
Crypto market intelligence platform Santiment Feed has declared that XRP is its crypto pick for January in a report shared yesterday on Twitter.
🐂 The #XRPNetwork has some intriguing network divergences pointing to strong #bullish cases. Our community post discusses whale addresses accumulating rapidly, traders continuing to #short, and a significant long/short on the verge of being crossed. 🤞 https://t.co/GHKKgAsoCw pic.twitter.com/RCOwEUaXji
— Santiment (@santimentfeed) January 2, 2023
From a price action perspective, Santiment believes that XRP provides an opportunity for a low-risk, high-reward trade. Sharing the XRP/USDT daily chart, Santiment explains that while XRP has been in a downtrend since 2021, the downtrend is a part of a larger uptrend that looks set to complete a triangle chart pattern. Notably, XRP is currently at the bottom of this developing triangle chart pattern indicating great upside potential.
Santiment reveals large bag holders with 1 million to 10 million XRP increased their holdings by 25% in the past 6 months even though XRP has been stuck between $0.28 and $0.54. The on-chain analytics platform highlights that this type of accumulation often characterizes price bottoms adding that these class of holders historically hold significant sway on the asset price, except for December 2020 when the US Securities and Exchange Commission filed a complaint against Ripple.
Santiment concedes that XRP’s Binance funding rate and overall market sentiment are negative. However, it highlights the 30-day MVRV (Market Value to Realized Value), which shows sellers will be selling at a 7% loss and the lack of a significant price decrease in the face of negative sentiment as positive. According to the firm, the latter indicates sellers’ exhaustion.
Notably, Santiment has urged investors to exercise caution and employ proper risk management, even as it asserts that XRP is an investment worth considering for January.
It is worth noting that aside from the factors mentioned by Santiment, other factors could influence the price of XRP in the future. For one, the SEC case against Ripple is at its tail end. With speculations about its outcome at a fever pitch, as can be seen with the growing trend of reports and discussions centered on the possibility of an out-of-court settlement as against a court ruling, investors can expect impulsive price reactions to any significant developments from the case at this point.
In addition, the XRP Ledger is also seeing some significant development. Developers recently launched native NFT functionality. In addition, a native Automated Market Maker and an Ethereum Virtual Machine (EVM) compatible sidechain are on the horizon.
XRP is exchanging hands for $0.3483 at press time, up 1.69% in the last 24 hours. It bears mentioning that the asset price endured an unexplained flash crash to $0.30 yesterday.
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