XRP is witnessing a decline in social dominance compared to Bitcoin, but historical data indicates this might be a precursor for a rally.
Amid occasional price surges, Bitcoin (BTC) has recently garnered significant attention in the crypto space. This results in a decline of attention on altcoins such as XRP, whose social dominance has dropped lately. However, this might be favorable to the asset.
Crypto analytical resource Santiment drew attention to this trend in social dominance in a recent tweet.
?️ With #Bitcoin's rise in price dominance in 2023, it's no surprise to see that greater attention is being paid to #crypto's #1 market cap asset. But keep an eye on $ETH, $ADA, $XRP, $BNB, and other assets that are seeing little attention by comparison. https://t.co/D2Ie9NtgWn pic.twitter.com/pvto19EnEA
— Santiment (@santimentfeed) July 3, 2023
According to Santiment, BTC has captured most of the crypto market’s attention due to its price dominance. However, the behavior analytics platform highlighted the potential of assets that have witnessed less social dominance in comparison, including XRP.
Notably, XRP’s social dominance has continued to drop, following the high of 6.94% on May 31. Social dominance hit the May 31 high after XRP recaptured the $0.50 price territory.
However, as XRP failed to solidify its position above $0.50, a displacement from the zone coincided with a decline in XRP’s social dominance. Following a period of continuous drop, social dominance for XRP has now plummeted to the current rate of 0.48%.
XRP Historical Data
Nonetheless, this massive decline in social dominance may bode well for XRP if historical data is considered. Throughout this year, a drop in XRP’s social dominance has often preceded a rally for the asset.
Social dominance for XRP dropped from a high of 8.38% on Feb. 19 to 0.59% on Mar. 11, following intermittent declines. However, this drop immediately preceded XRP’s rally in March, which saw the asset reclaim a 10-month high of $0.5850 on Mar. 29.
The March rally rejuvenated public interest in the asset, leading to another surge in social dominance. Consequently, XRP’s social dominance rose to 3.98% on Mar. 28. However, it dropped below 1% in mid-May as XRP succumbed to bearish pressure.
Interestingly, this mid-May drop in social dominance immediately preceded XRP’s rally from late May to June. XRP eventually surged to $0.5658 on June 13, receiving support from the release of Hinman’s documents in the SEC vs. Ripple lawsuit. Once again, social dominance surged.
Social dominance has now dropped below 0.50%, suggesting a massive decline in interest. If history repeats itself, XRP could be setting the stage for another rally. Positive updates on the SEC vs. Ripple case could provide the much-needed support for a run.
XRP is changing hands at $0.4913, up 1.51% over the past 24 hours. In what appears to be a good start to the month, XRP has gained by 3.87% in July, with three intraday gains. Two more days of persistent gains could see XRP reclaim the $0.50 psychological level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
