Analytics company Santiment on the chain has pointed out how utility peaks on the XRP network tend to precede the Bullish price promotion prior to the price of the assets.
XRP network activity illuminated for the last price die
In a new one after On X, Santiment discussed some network activity-related indicators for XRP. The statistics in question are the transaction volume and circulation.
The first of these, the transaction volume, measures the total amount of the cryptocurrency that becomes involved in transfers on the blockchain every day. Although this metric offers a sense of overall activity on the network, it can give a crooked picture of investor behavior.
This is due to the fact that not all transfers that are made to the chain represent true economic activity. Many of them have the same part of the offer, constantly in motion because of repeated transactions or internal shuffling.
The second indicator, the circulation, helps filtering for these movements such as this one. This metric keeps track of the daily unique number of tokens that is shifted on the XRP network.
With ‘unique’, what is meant here is that it does not matter how often a certain currency is involved in transfer activity on the blockchain, it still contributes only one unit to the value of the indicator.
Now here is the graph that is shared by santiment that shows the trends in both XRP statistics in recent months:
As shown in the graph above, the XRP transaction volume on 1 August saw a huge peak up to $ 2.1 billion. This 6 -month high increase in the metriek came when the price of the asset went through a draw to a low almost $ 2.70.
In addition to the rise in the volume, the circulation also registered a peak to 1.12 billion tokens, indicating that the transfer activity on the network was organic.
Since this outburst of activity on the blockchain, the cryptocurrency has witnessed any recovery. From the graph it is visible that in the past there have also been spikes in these indicators that have led to a price for the coin. “Utility Piekes on the network consistently predicting price jumps,” notes the analysis company.
In another news, XRP broke out of a triangular channel on Thursday, as analyst Ali Martinez explained in an X after.
In general, pimples above the top level of a triangle are considered Bullish Signals in Technical Analysis (TA). And indeed, as the pattern can have predicted, it has actively enjoyed an increase since then.
XRP -price
At the time of writing, XRP floats around $ 3.29, an increase of more than 7% in the last 24 hours.