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XRP has recorded its highest bullish sentiment in two years, thanks to positive news of its integration with Rakuten, Japan's largest e-commerce company.
According to cryptocurrency media outlet BeInCrypto on April 30 (local time), on-chain data analysis firm Santiment analyzed that investors' positive social sentiment index for XRP has reached its second-highest level in the past two years. The main reason behind this surge is Rakuten Wallet, the virtual asset exchange of Japan's Rakuten Group, listing XRP on April 15. This move has opened the way for 44 million users in Japan to convert over 3 trillion Rakuten Points, worth approximately $23 billion, into XRP.
Santiment diagnosed that XRP is receiving significant attention on social media due to the news of its new integration with Rakuten. As of April 29, the ratio of positive to negative comments for XRP recorded 3.9, deeply entering the FOMO zone, indicating an overheated market. However, Santiment explained, "These events rarely lead to immediate, massive price surges in terms of price," adding, "Bullish outcomes usually appear after the initial euphoria and FOMO subside." Indeed, after a FOMO surge on March 19, the XRP price experienced a slight downward correction.
XRP investors have been anticipating a turnaround, having witnessed a roughly 55% drop in market capitalization over the past nine months. With the April closing price likely to end in an increase, it is expected to break the chain of consecutive declines that has lasted for the past six months. This marks an exit from a slump comparable to the longest monthly decline recorded since early 2014. According to data from CryptoRank, this rebound suggests a significant change in the long-term slump that has continued for nine months.
However, historical statistics for May send mixed signals. While the average return for May in the past has been around 25%, the median value, excluding the exceptional surge in 2017, actually recorded a negative 2.6%. In fact, May has closed lower in 7 out of the last 12 years, statistically indicating a higher probability of bearish or flat performance. Experts advise that key integration news with large corporations can be a long-term driver for price, but caution should be exercised regarding short-term volatility.
The overall trend of the cryptocurrency market is also a key variable that will determine XRP's future performance. While market sentiment has improved somewhat recently due to easing geopolitical tensions, uncertainty surrounding the macroeconomic environment still remains. The market is closely watching the ripple effects of actual adoption cases that will emerge after the short-term overheating subsides.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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