XRP back above $0.57 even as Ripple traders take $8 million in profits
- Ripple traders take $8.36 million in profits on Thursday, Santiment data shows.
- XRP holds steady above $0.57 support, posting nearly 1% gains on the day.
- Ripple active addresses increased by nearly 30% since August 25, close to 20,000, at the time of writing.
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
However, XRP holds steady above key support at $0.57 at the time of writing, advancing close to 1% at the time of writing.
Daily digest market movers: Ripple traders take profits per on-chain data
- Data from crypto intelligence tracker Santiment shows that Ripple traders have taken $8.36 million in profits so far on Thursday, August 29.
- Profit taking in large volumes increases the volume of the asset in exchange wallets and increases the selling pressure on the asset.
- If traders continue profit-taking in large volumes, XRP could slip lower.
 [20.13.53, 29 Aug, 2024]-638605425908446685.png)
XRP network realized profit/loss
- XRP active addresses increased by nearly 30% between August 25 and 29. Active addresses are up to nearly 20,000 at the time of writing.
 [20.13.28, 29 Aug, 2024]-638605426267320307.png)
XRP active addresses
- On-chain metrics show mixed signals as to where XRP is headed next. Higher activity is typically a sign of gains. However, combined with profit-taking, XRP price could decline.
Technical analysis: XRP could slip by 9% and extend losses
XRP is in a multi-month downward trend. The altcoin could suffer a 9.23% decline and sweep liquidity at $0.5194, extending its losses.
Relative Strength Index (RSI) reads 47.76 on the daily time frame. RSI is under the neutral level.
XRP/USDT daily chart
A daily candlestick close above $0.60 could invalidate the bearish thesis. In that case, XRP could rally toward $0.66, the 50% Fibonacci retracement level of the decline from the July 13 top of $0.9380 to the July 5 low of $0.3823.
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.
