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On Sunday, November 17, Ripple’s (XRP) price hit $1 for the first in three years. This landmark also saw XRP volume rise to $24 billion, but as of this writing, that value has since dropped.
This decline indicates that interest in the altcoin is no longer as high as it was earlier. But how will this affect XRP’s price?
Market Attention to Ripple Drops
According to Santiment, XRP’s volume recently peaked at $24.40 billion but has since dropped significantly to $7 billion, marking a $17 billion decrease in buying and selling activity.
From a technical perspective, a rising price coupled with increasing volume typically signals a strong and sustainable uptrend. However, when the price rises while volume declines, it suggests weakening momentum and a potential reversal.
This appears to align with XRP’s current situation, where the volume drop indicates diminished market participation. If this trend persists, XRP’s price could struggle to maintain its upward trajectory and risk falling below the $1 mark in the short term.
Furthermore, a look at social dominance shows that the reading has dropped. Social dominance is measured by analyzing the percentage of discussions focused on a specific cryptocurrency compared to the total discussions happening across various crypto-related platforms. This metric highlights how much attention an asset is garnering within the broader crypto community.
When social dominance increases, it often indicates heightened interest or hype around the asset. Conversely, a decrease in social dominance may suggest that the asset is losing visibility or relevance in the market.
A few days ago, XRP’s social dominance was almost 13%. As of this writing, it has dropped to 2.34%, indicating that interest in the token has waned. Should this remain the case alongside the drop in XRP volume, the price might drop.
XRP Price Prediction: Sub-$1 Possible
Based on the daily chart, XRP experienced a surge in buying pressure earlier. This was indicated by the Money Flow Index (MFI), an indicator that measures the level of capital injected into a cryptocurrency.
But as of this writing, the MFI reading has dropped from that peak. This decline indicates that buying pressure is no longer as high as it was some days back. Therefore, if this reading continues to decrease, then XRP’s price could drop to $0.80.
However, if XRP volume climbs to the double-digits region again, this trend might change. Should that happen, the cryptocurrency’s value could rise to $1.26.