XRP Surges as FOMO Hits 3-Month Peak

XRP Holds Key Support Amidst Growing Optimism and Network Activity

XRP is currently trading near $1.04, maintaining its position above the critical $1.00 support level. This comes after the cryptocurrency experienced a dip to a 19-month low of approximately $1.01 on June 25.

Despite recent price volatility, data from analytics firm Santiment indicates sustained interest in the XRP Ledger. The network saw 4,941 new wallet creations in a single day, marking the highest level of network growth in over three months. Santiment noted that this surge in new users entering the ecosystem occurred while XRP’s price was under pressure.

Concurrently, social sentiment surrounding XRP has shifted towards optimism. Santiment’s analysis reveals a ratio of 3.7 bullish comments for every bearish comment, the most positive sentiment observed in three months. This suggests that many traders are viewing the $1.00-$1.05 price range as an opportunity to buy the dip, reflecting a growing fear of missing out (FOMO).

Santiment attributes this optimism to several factors, including XRP’s historical ability to rebound after significant price drops, ongoing discussions about Exchange-Traded Funds (ETFs) and institutional adoption, and observations that larger holders have continued to accumulate assets during the downturn. The firm emphasized the importance of monitoring whether the increase in new wallets translates into sustained buying demand or proves to be a short-term FOMO-driven trend.

In parallel, separate data from CryptoQuant highlights a shift in whale activity. While overall whale activity on centralized exchanges has become more prominent, its concentration on Binance has decreased. Whales appear to be diversifying their trading activities across multiple platforms.

Even as XRP’s price faces challenges, investment products linked to the cryptocurrency have attracted new capital. On June 29, U.S.-based spot XRP ETFs recorded net inflows totaling $15.34 million. The Bitwise XRP ETF led these inflows with $11.94 million, followed by Canary XRPC with $3.40 million.

Cumulatively, June’s inflows for spot XRP ETFs have exceeded $62 million, bringing the total net inflows across all such products to $1.48 billion, according to data compiled by SoSoValue.