HomeCrypto UpdatesToken XRP's Price Declines by 46% Since July 2023, While Liquidity Surges...

Token XRP’s Price Declines by 46% Since July 2023, While Liquidity Surges 50%: Implications Discussed

Published on

Latest data from Kaiko, a blockchain analytics firm, reveals that while XRP prices are down 46% from July 2023 highs, its liquidity has significantly improved in the past two months, expanding 50% from $8 million to $12 million as of early September.

XRP’s Liquidity Rising

The jump in market depth follows a United States court ruling in July that negated the Securities and Exchange Commission (SEC) assertions that the coin was an unregistered security and that Ripple, the blockchain company that relied on the token on its On-Demand Liquidity (ODL) solution, had illegally raised billions in their initial coin offering (ICO).

Based on market data, XRP’s market depth, a metric used to measure a digital asset’s supply and demand at every price level, has steadily risen. However, the analytics platform notes that the 50% jump in liquidity is amid a sharp contraction in trading volumes and prices. 

While liquidity has spiked, it still needs to be determined whether buyers are stronger than sellers at any price point, a reading that could help traders determine the short to medium-term trajectory. In an environment with stronger buyers, it hints that demand is high, a development that could support prices going forward.

Bears In Charge, Coin Down 46% From July Peaks

Price action data shows that XRP prices rapidly soared on July 13, rising nearly 100% as prices moved from $0.47 to $0.933. While there was optimism that there would be a follow-through that could lift XRP prices above $1 in the session ahead, prices have been cooling off steadily over the past two months.

Down 46% from July 13 peaks, XRP is changing hands at the early July 2023 zone, though trading volumes are within average when writing. 

XRP price on September 18| Source: XRPUSDT on Binance, TradingViewXRP price on September 18| Source: XRPUSDT on Binance, TradingView

It is not clear whether prices will recover from spot rates. What’s apparent is that XRP prices are still boxed within the July 13 bull bar, and buyers have a chance, based on volume analysis, provided prices are above July 2023 lows at around $0.45.

Presently, XRP is also down 70% from April 2021 highs, and bears are in control from a top-down preview despite the current upswing that has shifted sentiment following last year’s dump that saw XRP drop to around $0.30.

While Ripple registered a partial win in the July ruling, buoying XRP prices, the SEC intends to appeal. Even so, more analysts are convinced that the two parties will settle before the case goes to trial. This may support prices.

Some experts note that this settlement will be in the best interest of the regulator since a trial will mean Ripple might call “Ethereum ICO Insider,” Steven Nerayoff, as a witness. Nerayoff recently stated that Ethereum got preferential treatment during its initial coin offering (ICO).

Feature image from Canva, chart from TradingView

Latest articles

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...

What is the difference between NVMe and M.2?

`` Over the last decade, solid-state drives (SSDs) have become the top choice for many...

More like this

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...
bitcoin
Bitcoin (BTC) $ 62,113.64 0.52%
ethereum
Ethereum (ETH) $ 3,422.86 0.31%
tether
Tether (USDT) $ 1.00 0.12%
bnb
BNB (BNB) $ 411.03 0.90%
solana
Solana (SOL) $ 129.70 0.79%
xrp
XRP (XRP) $ 0.641696 6.47%
staked-ether
Lido Staked Ether (STETH) $ 3,418.29 0.50%
usd-coin
USDC (USDC) $ 1.00 0.29%
cardano
Cardano (ADA) $ 0.740276 4.97%
dogecoin
Dogecoin (DOGE) $ 0.143919 2.02%