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According to recent data from the popular data aggregator Santiment, XRP, XLM, and SNT are among the cryptocurrencies exhibiting tendencies toward social dominance. While this might suggest an imminent price surge, analysts at Santiment caution that there could be a catch.
Social Dominance Surges for XRP, XLM, SNT
Santiment took to Twitter to highlight that when a cryptocurrency's social dominance becomes high, the likelihood of its price increasing also rises. While these coins—XRP, XLM (Stellar), and Status (SNT)—are currently trending in this direction, Santiment warns of the risk of rapid sell-offs by traders seeking quick profits.
Interestingly, during the cryptocurrency market downturn in early November, triggered by the FTX exchange crash, XRP did not reach new lows as Bitcoin did. Investor interest in XRP was driven by the anticipation of a swift conclusion to the Ripple legal case and a potential victory. Such a victory would grant XRP the status of being the first regulated currency in the United States.
While XRP, XLM, and SNT exhibit social dominance trends that could imply price growth, traders should approach these assets with caution. The cryptocurrency market is known for its volatility and unpredictability, and the pursuit of quick profits can lead to rapid sell-offs. Therefore, it's essential for traders to conduct thorough research and consider potential risks before making investment decisions in these or any other cryptocurrencies.
