The consolidation process in Ripple (XRP) price, which has been going on for the past two weeks, is confirmed by different on-chain metrics that can be considered a volatility signal according to Santiment data.
Ripple investors may be waiting for choppy days
Network activity indicators of cryptocurrencies have strong correlations with price. With the price rising rapidly, investors and traders tend to move their funds more for a variety of reasons, including selling on exchanges, payments or redistribution.
The same rule applies to XRP. The relationship between Network Activity/Price is clearly visible. To rate it, the higher the network activity, the higher the chance of volatile movements in the trading pair. You can see the relationship between network activity and price from the Santiment data below.
Conclusion
While these data are useful in determining whether the market will experience increased volatility, they cannot be used as an indicator to determine which direction Ripple price might move.
Apart from on-chain data, XRP is currently going through a wide variety of non-market events that may or may not affect its price positively or negatively. cryptocoin.com Since the SEC’s actions against the company, which we quoted as , the investments that fled XRP have been recouped and the price has tripled. This is considered a positive sign for both Ripple and the cryptocurrency market.
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