Ripple’s XRP is inching closer to a potential rally, igniting speculation about a renewed interest in the asset. XRP gained momentum as Bitcoin (BTC) soared past $63,000, moving away from recent lows.
Recent Performance and Trading Activity
Currently trading at $0.58, Ripple’s XRP has posted a weekly increase exceeding 27%. At its peak, XRP briefly touched $0.56, driven by a surge in monthly trading volumes. Presently, XRP trading has intensified, stabilizing around $1.5 billion within a 24-hour period.
The question persists whether XRP can ascend to higher levels and sustain its growth. Current analyses suggest XRP is susceptible to manipulation, with short-lived rallies lacking broad support. Nevertheless, XRP remains a significant asset, and a shift to a more bullish sentiment could disrupt its sideways trend.
A key driver of the recent rally is increased whale activity around XRP. Until recently, XRP was closely monitored due to its regular releases from the Ripple Foundation’s escrow. The market has been reassured by the Foundation’s limited intent to liquidate its holdings. Recently, whale wallets have been withdrawing XRP from exchanges, indicating accumulation.
Ripple’s XRP dropped to a low of $0.39 after prolonged sideways trading before surging to $0.56 following the market recovery. XRP remains a utility token used for transactions on Ripple’s protocol. Despite its vast supply, the protocol’s fee-burning mechanism ensures inherent scarcity. Currently, only 5.3% of XRP’s supply is traded within 24 hours, with 55% of the coins in circulation. The remainder is reserved for long-term growth and interbank transaction experiments.
Whale watchers have observed several large-scale transactions withdrawing XRP from the centralized exchanges, some valued at nearly $20 million. Whale activity has increased since July, with extreme predictions suggesting XRP could rally to $10 during a new altcoin bull cycle. However, these predictions are at the extreme end, while others foresee a drop to baseline levels and continued sideways trading.
Comparing Recent Activity to Past Market Peaks
Recent XRP turnover echoes its activity and price levels from March and April, when XRP maintained a range between $0.60 and $0.70. Current data shows a marked acceleration in coin turnover, reaching 5.56% of the total supply. Whale activity is contributing to this rapid pace, with some transactions containing cryptic messages indicating a bullish future for XRP. Additionally, the Ripple Army, an active social media community, continues to influence upward price action.
Despite these positive indicators, there are warnings that the July rally might be short-lived. XRP has taken considerable time to break out, supporting long positions. A potential market correction could eliminate these long positions. Long positions constitute more than 64% of all positions on major exchanges, suggesting the current XRP price level is vulnerable to attacks.
A minor price decline to $0.53 recently led to over $300,000 in long liquidations within 24 hours. In a rapid correction scenario, extreme predictions see XRP falling to lows of $0.28.
In 2024, XRP has limited usage options. One primary tool for XRP holders is staking through exchanges. Kraken offers high returns for XRP staking, up to 25% annualized. Recently, Bitrue also introduced XRP staking pools, offering 7% APY with a minimum seven-day lockup period.
A significant advantage for Ripple’s XRP is the decision that it was not classified as an unregistered security, sparing Ripple, Inc. from a $2 billion fine for its early token distribution. Ripple continues to pursue its long-term goal of becoming the preferred solution for international banking.
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