XRP rallies past $0.50, resists decline after Ripple traders realized nearly $40 million in losses
- Ripple traders shed their holdings at nearly $40 million loss in the crypto market crash on Monday.
- XRP noted a decline in address activity as traders lost interest after mass sell-off.
- XRP sustained above $0.50 on August 7, nearly a 10% decline is likely.
Ripple (XRP) made a comeback above key support at $0.50 after the recent correction in the crypto market. On-chain data shows traders losing interest in the altcoin after a massive sell-off event on August 5.
Santiment data shows traders realized millions in losses, a likely sign of capitulation.
Daily digest market movers: Ripple traders dump holdings at a loss
- Santiment data shows Ripple holders shed their XRP at $38.3 million in losses on Wednesday, the single largest capitulation event in the altcoin since May 1, 2024.
- The Network Realized Profit/Loss metric measures the net profit/loss realized by all traders who moved the asset on a given day. The large negative spike on August 5 is, therefore, indicative of the losses realized on the day of the massive crypto crash on Monday.
- XRP traders have realized gains since then, per NPL data from Santiment.
 [22.42.25, 07 Aug, 2024]-638586512333603293.png)
XRP NPL vs. price
- The address activity metric used to track demand for the asset and trader interest shows a decline since the correction. This supports a bearish thesis for the asset, per Santiment data.
 [22.43.14, 07 Aug, 2024]-638586512664495273.png)
XRP active addresses vs. price
- Ripple announced its $10 million investment in tokenized US Treasury bills, RippleX Bug Bounty Program and partnership with DIFC Innovation Hub. Despite the series of positive announcements, the altcoin's price remains stuck around the resistance at $0.50.
Technical analysis: XRP could extend losses by nearly 10%
Ripple is in a downward trend that started on July 19, 2023, and since then the asset has attempted to break out of the decline, with no success. XRP slipped to a low of $0.43 on August 5 and recovered above $0.50 early on Wednesday.
The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars under the neutral line, meaning the underlying momentum in Ripple price is negative. XRP could extend losses by nearly 10% and slip to $0.45, the lower boundary of a Fair Value Gap (FVG) seen in the XRP/USDT daily chart.
XRP/USDT daily chart
A daily candlestick close above $0.52 could invalidate the bearish thesis, and XRP could advance toward the $0.60 target.
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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
