XRP has risen by almost 15% over the past seven days, ignoring the poor performance of the cryptocurrency market last week.
The token's price reached a 17-day high of $3.35 at the time of reporting. A combination of on-chain and technical indicators suggests that the rally could continue.
XRP Social Metrics Rise... Short-term Price Increase?
Market sentiment has rapidly shifted to a bullish stance for XRP. This is reflected in the rise of the weighted sentiment score, which measures traders' overall outlook. At the time of reporting, this indicator is at its highest in two weeks at 1.17.
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The asset's weighted sentiment measures the overall positive or negative bias by considering the volume of social media mentions and the sentiment expressed in those mentions.
When negative, investors become increasingly skeptical about the token's short-term prospects and reduce trading. This increases downward price pressure.
Conversely, when an asset like XRP has a positive weighted sentiment, market confidence increases and traders are more willing to participate in a rally. If this sentiment-driven momentum continues, it could amplify a short-term price increase for XRP.
Additionally, according to sentiment data, XRP's social dominance has risen to its highest level in 19 days at 7.95%. This means the altcoin is taking up a larger share of cryptocurrency-related social discussions.
Social dominance measures the proportion of total online conversation within the cryptocurrency sector for a specific asset. When this indicator spikes, it indicates increased retail interest and engagement for XRP.
This visibility could attract more speculative capital in the short term, driving further token appreciation.
XRP, Buying Pressure at Its Peak... Ready to Break Through
On the daily chart, XRP's Aroon Up line supports this bullish outlook. At 100% at the time of reporting, it indicates that the token's rally is strong and supported by significant buying pressure.
The Aroon indicator tracks the time since an asset reached its recent high (Aroon Up) or low (Aroon Down) to measure trend strength and timing.
When an asset's Aroon Up line is close to or reaches 100%, it means it has recently set a new high and is targeting further increases. This applies to XRP, which is currently at its highest point in two weeks. This suggests the market has strong bullish momentum and the possibility of a continued rally.
If this trend continues, the token's price could break through $3.39 and recover its cycle high of $3.66.
On the other hand, if buying decreases, the price could drop to $3.01.
