- A $5 billion difference between XRP and USDC could make it difficult for the token to rise back to 6th.
Though the exchange outflow was way more than the inflow, the price might see another red.
Within a span of two days, the trading activity for XRP decreased dramatically, dropping from a volume of approximately $4.87 billion on April 14th, to only $2.43 billion as of now, based on data from Santiment.
The level of trading activity for a token, represented by its volume, signifies market enthusiasm. An uptick in volume suggests brisk transactions are taking place. Conversely, a substantial decline in volume indicates waning market interest for that token.
Additionally, the price trend of XRP aligned with the event, as it stood at $0.49 currently. Previously, two days prior, XRP was priced around $0.54, indicating significant selling activity based on its decrease.
Is the rescue team coming?
If the market remains unfavorable, XRP could experience additional drops in price. The decreasing trading volume and trending price movements were previously indicative of a weakening downward trend.
If Bitcoin‘s [BTC] price keeps declining, it could be challenging for altcoins such as XRP to bounce back. Simultaneously, aspects of Ripple‘s token value aside from its price experienced a drop, with its market capitalization being the most noteworthy change.
Recently, XRP held the position of being the fifth most valuable cryptocurrency. But now, during the latest assessment, it had slipped to seventh place in the market rankings.
A market capitalization, or market cap, is calculated by multiplying a stock’s current price by its total number of outstanding shares in circulation. Consequently, it can be understood that the lackluster price movement was the primary cause of the decline.
At AMBCrypto, we recently compared the market capitalizations of XRP and USDC and found a substantial gap of about $5 billion between them. This significant distinction might make it challenging for XRP to regain its position as the sixth largest cryptocurrency by market cap.
Others eye XRP’s spot
In terms of short-term price prediction, our analysis focused on the exchange flow of XRP based on on-chain information. Specifically, there were 1.49 million XRP tokens moving out of exchanges, but only 688,000 tokens entered the exchanges.
The substantial disparity between the number of tokens entering and leaving the market significantly impacts the token’s worth. This occurred due to the elevated token outflows, suggesting that a smaller number of traders were disposing of their tokens.
In simpler terms, the value of XRP may hold steady or fluctuate around the same level. Dropping below $0.45 seems improbable for now. More likely, the price will bounce between approximately $0.49 and $0.52 in the near future.
In the future, the outlook may not be bright for cryptocurrencies in general, and XRP in particular, is underperforming in terms of price. Additionally, it faces competition from coins such as Dogecoin (DOGE) and Toncoin (TON).
Is your portfolio green? Check the XRP Profit Calculator
When examining their growth, DOGE and TON outpaced XRP. If this trend continues, XRP may find itself in competition with ADA for the number 10 position in terms of market capitalization.
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2024-04-16 16:39