Investors’ confidence in Ripple (XRP) may be shifting, according to Santiment data, which shows that the altcoin has seen a significant increase in positive sentiment since the beginning of the year. This comes after a period of low investor confidence in the market following FTX’s unexpected fallout.
At the time of publication, XRP’s weighted sentiment was 2.22, according to data from an on-chain data provider.
Despite an increase in positive sentiment toward Ripple (XRP), its price has not increased significantly and has instead remained within a narrow range. Since the beginning of the year, the price of XRP has ranged between $0.34 and $0.35, according to CoinMarketCap.
While the Moving average convergence/divergence (MACD) indicated that a bull cycle was underway on a daily chart, the persistent shortness of the histogram bars that comprise the MACD confirmed that the market had been range-bound.
When an asset’s price is range-bound, it means that it fluctuates within a specific price range and does not make any clear directional moves. This can occur when there are no clear catalysts or when the market is uncertain, and traders are hesitant to make large bets in either direction.
The positions of XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) lent credence to the market’s state of uncertainty since the beginning of the year. Since the 29th of December, when weighted sentiment turned positive, the key indicators have been flat.
If an asset’s RSI is flat, it may indicate that its price is consolidating rather than experiencing significant strength or weakness. Similarly, if the MFI is flat, it could indicate that the asset’s buying and selling pressures are balanced, and there is no discernible trend in volume.
XRP’s Chaikin Money Flow (CMF) has been on an uptrend in the last week, despite trading in a tight range. A rising CMF typically indicates a greater number of buying transactions than selling transactions, which frequently leads to price movement in the upward direction.
When an asset’s price lingers in a narrow range while its CMF rises, it may indicate a buildup of buying pressure that could lead to a breakout.