In the past 24 hours, the cryptocurrency market has witnessed a notable uplift, driven by Bitcoin’s march towards the $30,000 milestone. In this surge, XRP has emerged as a standout performer, recording an impressive 8% increase during this period, surpassing even Bitcoin’s gains.

Analyzing XRP’s recent performance, we can see that the cryptocurrency surged above the $0.53 threshold at its peak before experiencing a slight pullback below the $0.52 level. Nevertheless, the overall surge remains noteworthy, prompting speculation about whether this rally is temporary or indicative of a lasting trend.

Insightful data shared by on-chain analytics firm Santiment provides some valuable hints regarding the sustainability of XRP’s surge. One essential indicator is the “Supply Distribution,” which reveals the percentage of total circulating supply held by specific market participant groups.

Of particular interest are the sharks and whales, denoting significant investors with holdings ranging from 10,000 to 10 million XRP. According to Santiment’s analysis, these smart money groups have witnessed a recent accumulation phase, with their combined XRP holdings now reaching a three-month high.

Santiment suggests that the buying activities of these prominent holders are predominantly fueling the cryptocurrency’s latest price surge. Notably, these key investors have refrained from selling and capitalizing on their profits, which is an encouraging sign for the market.

Should this accumulation pattern persist in the days ahead, XRP’s rally could potentially continue further. However, there is also a negative signal emerging as social dominance surges alongside the surge in price.

Social dominance refers to the share of social media discussions within the top 100 cryptocurrencies focused on XRP. The increased mindshare suggests growing hype and talk surrounding the asset. While heightened enthusiasm from traders is generally positive, history has shown that excessive hype often precedes bearish market conditions. Notably, a similar spike in social dominance coincided with the previous market peak earlier in the month.

Considering these mixed signals, it is challenging to determine with certainty whether XRP’s rally will extend in the coming days or encounter a cooldown.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.