XRP just pulled off a disappearing act that would make any magician jealous. Poof! $16.47 billion in market value gone in a week’s time.
And that was before the Friday market dip. From a robust $185.15 billion on October 3, XRP’s market cap slid down to $168.68 billion by October 10, slapping its price down to $2.81.
Speculation?
The carnage kicked in right after October 3, the day XRP had a glorious run with a daily trading volume hitting $7.46 billion.
That kind of volume usually screams party, but the fun didn’t last long, selling pressure crashed the bash. Shortly after that, trading scaled back sharply to $4.92 billion, signaling a clear shift from hotshot speculation to watchful patience.
With XRP’s volume-to-market cap ratio now sitting at 2.93%, liquidity is thinning like the last slice of pizza at a crypto meet-up.
Long-term game
But don’t mistake this dip for a wipeout. XRP is still holding court with a fully diluted valuation north of $260 billion, meaning many traders aren’t ready to write it off just yet.
They’re still betting on Ripple’s long-term game, possibly the ETF approval, even if the short-term momentum is less sprightly.
Plus, the circulating supply clocks in at about 59.87 billion tokens, which is roughly 60% of the maximum 100 billion XRP supply, and experts say the army of holders just hit 478,000.
That’s retail and institutional wallets quietly stacking XRP despite the price seesaw.
Bearish signal
On the charts, XRP is guarding the $2.70 line like a grizzled gatekeeper.
The previous level matches the 78.6% Fibonacci retracement zone, defeated now, a fancy way to say it’s a critical support point, while the RSI languished near 41.9, telling us momentum is neutral but bruised.
The MACD’s negative histogram is shrinking, hinting that bearish vibes are still there, haven’t called it quits yet.
And just when you thought things couldn’t get more ominous, the dreaded death cross has appeared, the 30-day moving average sneaked under the 200-day, a time-tested bearish signal that douses any immediate bullish fireworks. And it shows.
Now, traders are stuck between hope and fear. Analysts warn that if XRP claws back above $2.90, expect a short-squeeze. But slide way below $2.7?
Leveraged liquidations could cascade, dragging XRP down toward $2.65 and possibly further into the bearish abyss.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
