The Santiment Chain Analysis Society stressed how public services on the XRP network tend to precede a bullish action in the price of the assets.
The activity of the XRP network lit up before the last price wave
In a new post on X, Santiment has discussed certain indicators linked to network activity for XRP. The measures in question are the volume and circulation of transactions.
The first of them, the volume of transactions, measures the total amount of the cryptocurrency which is involved every day in the transfers on the blockchain. Although this metric has a feeling of global activity on the network, it can give a biased image of investor behavior.
This is due to the fact that not all transfers made to the chain represent a real economic activity. Many of them imply the same part of the offer, constantly in motion due to repeated transactions or internal mixtures.
The second indicator, traffic, helps filter these movements like these. This metric keeps a trace of the unique number of daily tokens under travel on the XRP network.
By “unique”, what we mean here, regardless of the number of times a particular piece is involved in the transfer activity on the blockchain, it always contributes only one unit to the value of the indicator.
Now here is the graphic shared by Santiment which shows the trends of these two XRP measures in recent months:
As displayed in the above graph, the XRP transaction volume experienced a huge peak at 2.1 billion dollars on August 1. This 6 -month high -level increase in metric came while the price of the assets took place by catching up towards a low almost $ 2.70.
In addition to the increase in volume, traffic also recorded a peak at 1.12 billion tokens, indicating that the transfer activity occurring on the network was organic.
Since this burst of activity on the blockchain, the cryptocurrency has experienced a certain recovery. From the table, it is visible that there have also been tips in these indicators in the past which have led to an increase in the prices of the medal. “Pics of utility on the network constantly prefigure price jumps,” notes the analysis company.
In some other news, XRP left a triangular chain on Thursday, as analyst Ali Martinez explained in a post.
Generally, eruptions above the upper level of a triangle are considered as bullish signals in the technical analysis (TA). And indeed, as the scheme may have prefigured, the asset has eventually enjoyed a wave since then.
XRP price
At the time of writing the editorial staff, XRP floats around $ 3.29, up more than 7% in the last 24 hours.
