At $37.39 billion, Ripple [XRP] has once again displaced Binance [BNB] coin as the fourth largest crypto asset by market capitalization.
Read Ripple’s [XRP] Price Prediction 2023-24
XRP’s market cap first rallied to this position as the token’s trading volume surged in the few weeks that followed Judge Analisa Torress’ ruling, which declared that Ripple’s sale of XRP tokens in 2020 did not qualify as the sale of an “unregistered security.”
Following the ruling, investors shifted their attention to altcoins causing their volume dominance to jump to a four-month high, research firm Kaiko noted in a recent report.
Since the 13 July ruling, XRP’s value has increased by 51%. At press time, the altcoin exchanged hands at $0.7097. With an impressive 49% jump in price in the past month and a corresponding market cap growth, XRP’s current price set up on a daily chart revealed that a correction might be near.
Maybe now is not the time to ape in
A look at XRP’s Moving Average Convergence/Divergence indicator (MACD) on a D1 chart revealed that the alt commenced a new bear cycle on 25 July. This indicator tracks trends and potential momentum changes concerning an asset’s price. It consists of two lines, the MACD, and the signal lines.
When the MACD line crosses below the signal line (as is the case here), a bearish signal is generated, suggesting that selling momentum is gaining ground.
With XRP’s MACD marked by red histogram bars below the zero-line, negative sentiments permeated the daily market at press time.
Signaling a decline in XRP’s accumulation in the past few days, its Money Flow Index (MFI) rested beneath the center line at 39.19. This suggested that buying momentum declined as more traders took to selling to book profits.
Although other key momentum indicators, such as the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF), were above their respective center lines at press time, they were positioned in a downtrend, indicating a decline in buying pressure.
How much are 1,10,100 XRPs worth today?
Less demand meets even lesser profits
On-chain assessment of the token revealed a decline in the daily active address count and new demand since mid-July. According to data from Santiment, since 13 July, the count of daily active addresses that have traded XRP has dropped by 58%.
The token has also since been plagued by a shortfall in new demand. Information from the same data provider revealed a 71% fall in daily new demand for alt during the same period.
Regarding the profitability of XRP trades, in the last week, the ratio of daily transactions in loss has exceeded those in profit, data from Santiment showed.