• XRP price observed some increase in the past day but not enough to initiate a recovery rally.
  • Until XRP holders begin accumulating again, the chance of a rally akin to the end of October is unlikely.
  • The Head of Payments Product at Ripple stated that the company intends to be a large part of the potentially $300 trillion cross-border payment industry.

XRP price is close to taking a break from the active downtrend, but the altcoin still does not have enough bullish momentum to initiate a recovery rally. For the most part, the focus of the parent company Ripple is now on the macro-financial aspect, as evidenced by an executive who stated that the payment processor is eyeing the global cross-border payment industry.

Ripple has its next target

Ripple, which has been a key entity in connecting banks and other financial institutions for conducting instantaneous cross-border payments, is now looking to double down on the same. According to the Head of Payments Product at Ripple, Pegah Soltani, the company intends to revolutionize the cross-border payment sector, potentially using a powered solution.

According to Soltani, the industry has the capability of becoming a $300 trillion sector by 2030, and if Ripple manages to become a crucial part of it, it would unlock immense profits for not just the company but for XRP holders as well.

As is, XRP is an important part of institutional investors' holdings. As observed in the Coinshares’ report, for the week ending November 17, XRP bought in over half a million dollars in investment, bringing its month-to-date inflows to $17 million. Consequently, since the beginning of the year, the cryptocurrency has managed to bring in $68 million, which is much higher than the other assets on the list, such as Cardano (ADA), Tron (TRX), etc.

Ripple institutional inflows

Ripple institutional inflows

This is expected to act as a bullish catalyst for XRP price as well.

XRP price continues to struggle

XRP price is likely set to begin a sideways movement, trading at $0.620 at the time of writing. Over the past two weeks, the altcoin has declined by close to 19% but gained slightly in the past 48 hours. 

Nevertheless, the larger picture ascertains that until XRP manages to reclaim $0.644 as a support floor, a recovery rally is unlikely. The Moving Average Convergence Divergence (MACD) indicator has also yet to confirm a bullish crossover, as the bars on the histogram are still red, suggesting that the bearishness is waning.

Thus, a retest of $0.644 would prove to be the bullish boost needed for Ripple to initiate a recovery rally and send the XRP price to $0.700.

XRP/USD 1-day chart

XRP/USD 1-day chart

However, if the sideways movement continues and XRP fails to produce enough bullishness, it could slip back down to test $0.600 as support. Falling through this line would invalidate the bullish thesis and push the altcoin to $0.551.

Investors need to make a move

By the looks of it, the XRP price is bound to witness sideways movement for a while since the investors are not making a definite move at the moment. Neither are XRP holders willing to sell their assets to book profits or offset losses nor are they trying to accumulate more tokens to instill a sense of bullishness in the market.

This is evident by looking at the Market Value to Realized Value (MVRV) ratio. This indicator is used to assess the average profit/loss of investors who purchase an asset. The 30-day MVRV ratio measures the average profit/loss of investors who purchased an asset in the past month. 

For Ripple, when the 30-day MVRV hits 12% to 23%, XRP has undergone major corrections. At this time, investors are likely to sell their holdings to realize profits, which could trigger a sell-off. Hence, this area is termed a danger zone.

Likewise, when the MVRV value hit anywhere between -17% and -32%, it was often followed by rallies. Hence, this area is termed an “opportunity zone” and an ideal place for accumulation.

Ripple MVRV ratio

Ripple MVRV ratio

But since XRP has missed hitting either zone during the recent rally and correction, investors are likely going to refrain from making a move until they witness clearer signs. Thus, Ripple will most likely have to wait for either accumulation or selling and consequently continue moving sideways for a while.

Cryptocurrency metrics FAQs

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

What is trading volume?

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

What is funding rate?

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Pepe bears eyes for double-digit correction

Pepe bears eyes for double-digit correction

Pepe (PEPE) continues to decline and trades below $0.000015 at the time of writing on Tuesday after correcting more than 22% since Saturday. The technical outlook suggests further correction ahead as momentum indicators show signs of weakness.

More Pepe News
Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin price holds above the $100K mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO after Trump’s inauguration.

More Bitcoin News
Three reasons why AAVE could rally in upcoming days

Three reasons why AAVE could rally in upcoming days

Aave (AAVE) price hovers around $340 on Tuesday after rallying 9% the previous day. On Monday, the Ethereum Foundation allocated 50,000 ETH worth $165 million starting first with Aave, marking an endorsement of the protocol.

More Aave News
Ripple's XRP jumps 5% as Trump taps pro-crypto Mark Uyeda as acting SEC Chair

Ripple's XRP jumps 5% as Trump taps pro-crypto Mark Uyeda as acting SEC Chair

Ripple is up 5% on Monday after US President Donald Trump announced pro-crypto Mark Uyeda as the new acting SEC Chair. The announcement follows increased buying activity across XRP spot market and investment products.

More Ripple News
Bitcoin: BTC rallies above $102,000 ahead of Trump’s inauguration

Bitcoin: BTC rallies above $102,000 ahead of Trump’s inauguration

BTC's price continues to trade in the green, trading above $102,000 at the time of writing on Friday after rallying more than 7% this week. Recent US macroeconomic data released this week supported the rise of risky assets like BTC. 

Read full analysis
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

BTC

ETH

XRP