Ripple network activity after Flare airdrop suggests that the asset has fundamentally lost its spark, but technicalities on the other hand may suggest that the spark was enough to light the fuse, and the first wave is just the beginning of the full blast it must come.
Post-Flare Airdrop Ripple Effect leaves network activity at low monthly levels
The third-ranked cryptocurrency by market cap appears to be in its own world and market cycle when it comes to the crypto space.
XRP missed the summer altcoin season and was unaffected by last year’s bullish Bitcoin. The altcoin stood still for so long, it was the worst performing three years in a row and performed so poorly Ripple was forced to buy back part of the stock to rekindle interest.
Related reading | Underdog Story: Why XRP May Outperform Bitcoin and Ethereum Soon
The tactic failed, but the spark needed for the outbreak came with the Flare Network airdrop and the issuance of Spark tokens to anyone who owns XRP at the time of a blockchain snapshot.
The lure of free Spark tokens caused a massive breakout in XRP and a rally of over 200% from start to finish. But after the December 12 snapshot Ripple protocol activity fell off a cliff, and the price per XRP followed.
Ripple protocol activity fell off a cliff post-Flare airdrop | Source: Santiment.com
How Spark Tokens Could Have Ignited the XRP Bull Market Fuse
Ripple network activity has indeed fallen to monthly lows, according to blockchain analysis company Santiment. Once Spark’s snapshot was over, that was also the spark that ignited the rally. Or was it?
Related reading | The Ripple Effect: 5 Major Factors Behind the 100% XRP Peak
XRPUSD has been reversed bear market resistance as a support, above a 2017 high.
The bullish breakout has also registered on the Average directional index with a sharp rise and rise above key level 20. ADX values of 20 or higher suggest a trend is strong, and passing above 20 initially indicates that the trend has just begun.
The Average Directional Index says the bull trend is only beginning | Source: XRPUSD on TradingView.com
During the last cycle, two impulses came in tightly packed. The green DMI + line spiked up one more time before the ADX went through the bullish indicator. After nearly nine months of consolidation, Ripple reached for the stars one more time, which placed the peak price at over $ 3 in early 2018.
As history repeats itself, the Spark token lit the fuse for a bullish boost one of three, with the second now arriving every day. The third and final impulse, which is the most profitable of all, could take another year.
Featured image from Deposit Photos, Charts from TradingView.com