XRP price is struggling to maintain above important $0.37 price level as market becomes bearish again
Following the unlocking of one billion tokens from an escrow wallet, the XRP price faced a serious obstacle as traders and investors started to sell their holdings rapidly before the potential one billion sell-outs.
XRP price Analysis: Coin Is Fighting for Important Support Level
Ripple officially entered the local uptrend on July 1 after it closed above the previous low, forming a higher low pattern, which shows an upcoming reversal. Later on, XRP climbed above the 50-day Exponential Moving Average, which was one of the strongest signals for a reversal rally in the last 140 days.
As for now, bulls are actively trying to hold the line against the existing selling pressure caused by the aforementioned unlocking of one billion tokens and the fading bullishness of the cryptocurrency market. As we mentioned before, the rally on Ethereum and Bitcoin might be misleading considering the lack of fundamental recovery signs.
Despite negative sentiment around the crypto market, XRP remains in an uptrend and does not show signs of a reversal back below $0.35. At press time, bears poured more than 100 million of XRP on the market, which is considered a relatively low selling or buying volume for the token.
Additional indicators like the Relative Strength Index are not showing information that can be used by bears or bulls, as XRP’s most recent rally was not strong enough to push assets into the “overbought” zone. The token remains in a neutral area after a 25% price increase and is now losing around 8% from the local top, which could be part of a local correction, after which we are going to see a resumption of the rally.
Ripple’s XRP sales increased almost 50% in Q2 vs Q1
Ripple has been able to make major strides when it comes to increasing the utility of its XRP ledger and On-Demand Liquidity (ODL) service. The U.S.-based crypto fintech firm noted that year-to-date (YTD) volumes associated with its ODL module have increased 9x year over year, thanks, in large part, to the various partnerships the company has entered into recently. For example, Ripple signed a multi-year agreement with Lithuanian money transfer provider FINCI with the goal of delivering instant and cost-effective retail remittances within Eastern Europe.
The growth of Ripple’s ODL module has resulted in the sale of the platform’s associated cryptocurrency XRP also increasing by 50%. The firm sold about $409M worth of XRP during Q2, adding to the $273.3 million it cut from its holdings the quarter prior to that. That said, trade volumes have reduced by 22% quarter-to-quarter to an average daily volume of $862.6M, with this metric previously standing at $1.1B. The author of the report noted: “XRP price and volume declined due to broader macroeconomic cues and idiosyncratic developments affecting the crypto market recently.”
Ripple recently said that it will commit $100M to help spur carbon removal activities on a global scale by investing in climate-focused fintech companies as well as other companies associated with this space. The money will also be used to support new functionality and the development of tools that can help enable carbon credit tokenization as core NFTs on the XRP Ledger.
Lastly, during Q2 2022, the Ripple Foundation doled out $3M worth of funding to 36 awardees as part of its XRPL Grants program.
- XRP Is Trading In The Red After The Cryptocurrency Market Capped Off Its Best Month Of The Year
- XRP And Cardano (ADA) Have Managed To Move Further Up In The CoinMarketCap Top By Market Capitalization
- Ripple Partner Put 1st Version Of Colombia’s Land Registry To Record The First Adjudication Resolution On XRPL