XRP (XRP) has observed an uptick in social dominance amid the prevailing bearish condition plaguing the asset. Crypto analytical resource Santiment suggests that the new XRP trend might indicate increasing chances of a potential price recovery.
Santiment confirmed that XRP started witnessing an uptick in social activity in the early hours of today. Data reveals that this morning the asset observed its most significant spike in social dominance since May.ย
Notably, XRPโs social volume had continued to suffer since June, particularly due to its price consolidation. Following the drop from the $0.50 psychological support on June 22, XRP has traded within a range of $0.45 and $0.49, unable to reclaim $0.50.
A lack of significant updates on the legal battle between Ripple and the US SEC has also contributed to this decrease in social volume. However, despite the sustained price consolidation, XRPโs social dominance saw a massive spike this morning as discussions on the asset increased.
Santiment emphasized that such an increase in social volume typically serves as a precursor to a price recovery, especially when observed during a market downturn. According to Santiment, this potential recovery usually flushes out greedy short positions and FUD.
The last time XRP saw a similar spike in social dominance was on May 30, when the metric surged to 7.4%. However, the May spike occurred when the asset had set out to recover the losses observed earlier that month.
XRPโs social dominance remained high in earlyย June. This was due to the buildup to the release of the documents about former SEC Director Bill Hinmanโs infamous speech. Ripple released the documents on June 13, leading to a surge in XRPโs value to $0.5658.ย
However, this was not sustainable, as social dominance collapsed shortly after, and so did XRPโs price. At a current value of $0.4687, XRP has traded below the $0.50 level for over two weeks. If Santimentโs projections are accurate, the asset could finally stage a recovery.
