XRP slides 4%, cedes to BNB as third-largest crypto
- XRP dropped 4% on Tuesday following increased FUD from retail investors.
- The sentiment comes as BNB flipped XRP in market cap to become the third-largest crypto asset.
- XRP could fall to the $2.71 support after declining below the 50- and 100-day SMA convergence.
XRP declined 4% on Tuesday as growing fear, uncertainty and doubt (FUD) triggered increased selling pressure for the asset. The decline was accompanied by BNB overtaking XRP to become the third-largest cryptocurrency by market capitalization.
XRP cedes third-largest crypto position to BNB
XRP fell 4% in intraday trading on Tuesday, fueled by an increasing wave of FUD among investors. The cryptocurrency saw its highest level of retail FUD since US President Donald Trump announced tariffs in April, according to crypto analytics platform Santiment.
The shift in sentiment signals growing impatience for a rally, with bearish XRP comments outweighing bullish statements across social media platforms.
However, Santiment highlighted that such a move often precedes a potential breakout as markets tend to move in the opposite direction to "small traders' expectations."
XRP's decline was followed by a drop in its rank among the top ten cryptocurrencies on Tuesday. BNB flipped the remittance-based token to become the third-largest crypto asset by market cap, climbing to $179 billion and surpassing XRP's $171 billion.
BNB extended its rally by 8% on Tuesday, clocking a new all-time high of $1,330. The token also outperformed the top 100 cryptocurrencies over the past week, rising by 30%.
The latest surge coincided with a disclosure from CEA Industries (BNC), which announced that it holds 480,000 BNB tokens valued at over $600 million.
It also follows Binance co-founder Changpeng Zhao's (CZ) post on X, calling a "BNB meme season." Alongside CZ's comment, the increased trading volume of decentralized exchange Aster has served as a major boost for BNB's rally.
BNB's trading volume has also soared from over $2 billion last week to $9 billion in the past 24 hours, reflecting strong sentiment among traders, according to CoinGecko data.
XRP risks a decline to $2.71 if bulls fail to recover SMA convergence
XRP experienced $22.3 million in futures liquidations over the past 24 hours, led by $20.3 million in long liquidations, according to Coinglass data.
The remittance-based token saw a rejection at the descending trendline resistance, which extends from July 21, a level it has failed to hold above in the past three months.
XRP/USDT daily chart
XRP has also declined below the convergence of the 50-day and 100-day Simple Moving Average (SMA). On the downside, XRP risks a decline to the $2.71 support if bulls fail to recover the SMAs convergence.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have declined below their neutral levels, indicating a dominant bearish momentum.
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
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
