Ripple’s native cryptocurrency, XRP, has seen a price surge of more than 7% over the past 24 hours. Nonetheless, certain market analysts caution that this could be a classic example of a “dead cat bounce,” a phenomenon often observed during broader market downturns, where traders establish positions in anticipation of a temporary rally. On-chain analytics indicate a persistent decrease in demand for XRP, alongside a growing trend of investors cashing out for profits.
### Ripple’s Short-Term Rally Offers No Respite
Commonly described as a dead cat bounce, this price fluctuation represents a brief resurgence in an asset’s value following a significant drop. On Monday, XRP’s price fell to a 30-day low of $0.43. Shortly after this decline, the market rebounded, resulting in a 12% increase in XRP’s price over the last 24 hours—an upward movement some investors suspect may merely be a temporary blip. Conversely, both on-chain metrics and daily price trends suggest that this altcoin might continue along its downward trajectory.
One noteworthy aspect is the negative divergence between XRP’s price and daily active addresses (DAA). This metric assesses the correlation between price shifts and the number of active addresses on the network. Investors monitor this to determine whether network engagement aligns with the price trends observed.
As of the current analysis, the DAA deviation for XRP’s price stood at -51.65%. A negative price DAA deviation, especially during a price uptick, indicates that user engagement or network activity is failing to keep pace with the rising prices, hinting at a fragile and unsustainable rally.
### How Much is XRP Coin?
If selling pressure intensifies, XRP may forfeit today’s gains and continue its downward slide, potentially dropping to $0.46.
However, should buying momentum persist and indicators turn favorable, XRP’s price could climb to $0.52. At the time of this report, XRP was priced at $0.5146.
In summary, Ripple’s XRP has recorded a 7% price increase over the last day, yet some market participants view this as a potential “dead cat bounce.” On-chain data points to a reduction in demand and a shift towards profit-taking among investors.
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**Disclaimer:** The information presented in this article is not intended as investment advice. Investors should recognize that cryptocurrencies are highly volatile and carry significant risk, and should conduct their own research before making any investment decisions.
