- XRP investors are still at an average profit of 32% despite recent sideways price action.
- XRP's futures open interest and trading volume have been weak since October 1.
- XRP could rise to $0.5608 if it maintains bullish momentum and crosses above the 100-day and 200-day SMA.
Ripple's XRP is trading near $0.5140 on Tuesday following declines in several of its on-chain data, which indicates declining investor interest. The remittance-based token could rally toward $0.5608 after crossing above the upper boundary of a symmetrical triangle.
XRP suffers waning investor interest
XRP's on-chain data has remained fairly quiet since around October 1, when investors realized profits of over $134 million.
The most recent modest spike was in XRP's Age Consumed on October 20 after prices moved lower and investors realized losses of about $34 million. The Age Consumed metric tracks previously idle coins and spikes when these tokens move between addresses.
As a result, XRP's Market Value to Realized Value (MVRV) Ratio is 32%, indicating that all investors are making an average profit of 32%. However, the percentage of total supply in profit plunged from 90% on October 1 to 70% on Tuesday.
 [22.03.29, 05 Nov, 2024]-638664404108098157.png)
XRP Key On-chain data
Meanwhile, XRP's open interest has remained below $800 million and is trending downwards. Open interest is the total number of unsettled contracts in a derivatives market.
The decline in open interest signifies low investor interest or rising liquidation of XRP positions. XRP's futures volumes indicate the former, as the cryptocurrency's trading volume is low, hovering between $500 million and $1.5 billion since October 1.
XRP Futures Volume
The XRP long/short ratio from the total volume is 0.935 and has remained below 1 in the past month, indicating that most traders are slightly bearish on the coin.
Ripple technical analysis: XRP could rise to $0.5608
Ripple's XRP is trading near $0.5140, up 2% on the day.
The remittance-based cryptocurrency has crossed above the upper boundary of a symmetrical triangle and the 50-day Simple Moving Average (SMA).
If XRP maintains the momentum and crosses above the 100-day and 200-day SMA, it could rally toward $0.5608. The Relative Strength Index (RSI) and Stochastic Oscillator have crossed above their midlines, indicating bullish pressure is dominant.
XRP/USDT 4-hour chart
However, a rejection near the 200-day SMA could send its price toward the support level at $0.4860. A daily candlestick close below $0.4860 will invalidate the thesis and send the price lower toward $0.4500.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC & ETH rebound, XRP rallies ahead of CPI data
Bitcoin and Ethereum prices continue to recover on Wednesday after finding support around their key levels this week. On the other hand, Ripple remains strong and found support around its upper symmetrical triangle boundary.
Ripple donates $100,000 to California wildfire relief efforts; XRP investors anticipate SEC's opening brief
Ripple is up 5% on Tuesday following recent positive developments surrounding its ecosystem and JP Morgan's prediction of over $8 billion in inflows into XRP ETF if it gains approval from the Securities and Exchange Commission.
Bitcoin could lose its diversification status as correlation with stocks increases
Bitcoin's rising correlation with the traditional stock market is gradually affecting its role as a portfolio diversifier. This trend has been visible following Bitcoin's similar reactions to the S&P 500 upon macroeconomic data releases.
Crypto Today: BTC taps $97K, DOGE and XRP in green as SEC sues Musk ahead of Trump Inauguration
The cryptocurrency sector rose by 2.4% on January 14, with the aggregate market capitalization crossing $3.3 trillion. Bitcoin price reclaimed the $97,000 resistance level, with technicals signaling upside ahead.
Bitcoin: Room for a recovery or continuation of the pullback?
Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.