XRP dips to $0.52, Ripple reserve on Binance down by whopping 167 million since July
- XRP token reserve on Binance is down 167 million from August through the time of writing.
- Ripple CEO Brad Garlinghouse discussed blockchain technology potential with Japanese lawmaker Taira Masaaki on XRP community day, September 6.
- XRP dips to $0.5289, a slight decline in value on Monday.
Ripple (XRP) reserve on one of the largest crypto exchanges, Binance, declined by 167 million in a time frame of five weeks. This is a key development for XRP holders since a decline in the asset’s reserves on exchanges implies there are fewer XRP tokens to sell. Thus lower selling pressure on the altcoin should ensue.
XRP trades at $0.5289 at the time of writing.
Daily digest market movers: Ripple reserve on Binance dwindles
- Data from crypto intelligence tracker CryptoQuant shows that Binance’s reserves of XRPLedger’s native token dipped by 167 million over the past five weeks — between August 1 and the time of writing.
- Typically, a decline in an asset’s exchange reserves is considered positive since it reduces the available tokens for sale on a crypto exchange platform. This implies lower selling pressure and lower possibility of a negative impact on the asset’s price.
XRPLedger exchange reserve on CryptoQuant
- Ripple CEO Brad Garlinghouse recently met a Japanese lawmaker and spoke about blockchain technology and crypto in Japan on XRP community day, September 6.
- Garlinghouse says that through clear frameworks and constructive policy, Japan could foster innovation in blockchain.
Great to meet Rep @TAIRAMASAAKI in Tokyo this week -- Japan's leaders are committed to advancing crypto and blockchain technology, through clear frameworks and constructive policy that protects consumers and enables innovation. https://t.co/3WPJT05TuO
— Brad Garlinghouse (@bgarlinghouse) September 6, 2024
Technical analysis: XRP could extend losses to $0.50
Ripple is in a multi-month downward trend that started with the altcoin’s decline from the July 13 top of $0.9380. The altcoin could sweep liquidity at $0.5026 and extend losses by nearly 6.28%. XRP could slip to support and the September 6 low for the asset.
The Moving Average Convergence Divergence (MACD), a momentum indicator, shows red histogram bars under the neutral line. This implies there is underlying negative momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close at the upper boundary of the Fair Value Gap (FVG) at $0.5785 could invalidate the bearish thesis. XRP might target this level in a coming rally.
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.
