XRP Price Down 46% Since July 2023 But Liquidity Up 50%, What This Means For The Token

Read full article at Bitcoinist.

Latest data from Kaiko, a blockchain analytics firm, reveals that while XRP prices are down 46% from July 2023 highs, its liquidity has significantly improved in the past two months, expanding 50% from $8 million to $12 million as of early September.

XRP’s Liquidity Rising

The jump in market depth follows a United States court ruling in July that negated the Securities and Exchange Commission (SEC) assertions that the coin was an unregistered security and that Ripple, the blockchain company that relied on the token on its On-Demand Liquidity (ODL) solution, had illegally raised billions in their initial coin offering (ICO).

Based on market data, XRP’s market depth, a metric used to measure a digital asset’s supply and demand at every price level, has steadily risen. However, the analytics platform notes that the 50% jump in liquidity is amid a sharp contraction in trading volumes and prices. 

While liquidity has spiked, it still needs to be determined whether buyers are stronger than sellers at any price point, a reading that could help traders determine the short to medium-term trajectory. In an environment with stronger buyers, it hints that demand is high, a development that could support prices going forward.

Bears In Charge, Coin Down 46% From July Peaks

Price action data shows that XRP prices rapidly soared on July 13, rising nearly 100% as prices moved from $0.47 to $0.933. While there was optimism that there would be a follow-through that could lift XRP prices above $1 in the session ahead, prices have been cooling off steadily over the past two months.

Down 46% from July 13 peaks, XRP is changing hands at the early July 2023 zone, though trading volumes are within average when writing. 

XRP price on September 18| Source: XRPUSDT on Binance, TradingView

It is not clear whether prices will recover from spot rates. What’s apparent is that XRP prices are still boxed within the July 13 bull bar, and buyers have a chance, based on volume analysis, provided prices are above July 2023 lows at around $0.45.

Presently, XRP is also down 70% from April 2021 highs, and bears are in control from a top-down preview despite the current upswing that has shifted sentiment following last year’s dump that saw XRP drop to around $0.30.

While Ripple registered a partial win in the July ruling, buoying XRP prices, the SEC intends to appeal. Even so, more analysts are convinced that the two parties will settle before the case goes to trial. This may support prices.

Some experts note that this settlement will be in the best interest of the regulator since a trial will mean Ripple might call “Ethereum ICO Insider,” Steven Nerayoff, as a witness. Nerayoff recently stated that Ethereum got preferential treatment during its initial coin offering (ICO).

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

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