Ripple (XRP) price loses $0.70 support: what's next
Date: 2023-08-02 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The price of Ripple briefly dropped below $0.68 for the first time since defeating the U.S. Securities and Exchange Commission in mid-July. Readings of key on-chain metrics indicate that long-term holders have begun to get rid of XRP.
After a resounding victory in a drawn-out lawsuit against the U.S. Securities and Exchange Commission, Ripple hit an annual high of $0.84. However, in the past two weeks, the price of XRP has stalled around the $0.70 mark. We figure out if the bulls have enough strength to launch a new rally.
Long-term investors are getting rid of Ripple
Data from analytical platform Santiment indicates that XRP has seen a lot of pressure from long-term holders this week. This is evidenced by the Age Consumed metric: in the period from July 22 to July 28, its readings soared more than 10 times, which provoked a price drop below $0.70.
The Age Consumed indicator evaluates the change in trading activity of long-term investors in real time. It is calculated by multiplying the number of recently sold tokens by the number of days since they were last moved. If the growth of the metric is not accompanied by sufficient market demand, Ripple holders could provoke a prolonged price pullback.
XRP transaction volume has started to decline
The XRP Ledger Network has been unable to sustain the high transactional activity that has been seen since winning the SEC lawsuit. This once again confirms the bearish forecast.
The chart below shows that on July 13, investors made trades worth 2.77 billion Ripple. At the close on July 31, the figure dropped to 1.21 billion coins.
With mounting selling pressure and long-term holders exiting positions, XRP may not attract enough demand to support the current price.
Ripple Price Prediction: $0.65 Support Is Critical
MVRV (30d) data shows that the majority of investors who bought XRP in the last 30 days are now losing 1%. They will hold positions until their losses reach 5%, i.e. to $0.65. If this support level fails, the price of the asset will continue to decline.
In case of fixing above $0.75, control over the situation will again pass to the bulls. However, given the factors listed above, such a scenario looks unlikely.
