XRP simmers down, but how long before the next rally?
- XRP saw almost a 12% decline as the initial hype of the ruling wore off.
- More long positions got liquidated as price corrections set in.
The recent summary judgment sent Ripple’s [XRP] of excitement through the crypto community. As a result, XRP saw a spike as many buyers followed the hype. However, the price seems to be cooling down, but how long before the next pump commences?
Read Ripple’s [XRP] Price Prediction 2023-24
Ripple cools off – for now
Wu Blockchain’s recent post revealed a significant drop of more than 13% in XRP’s value within 24 hours. The decline comes after a surge in price that followed the release of the summary judgment. The judgment initially ignited an altcoin rally, but the momentum seems to be subsiding.
XLM has fallen by 13.5% in the last 24 hours; XRP has fallen by 13% in the last 24 hours; ADA FTM BSV LTC MKR has also fallen sharply; the amount of liquidation in 24 hours reached 218 million US dollars, and 160 million US dollars was long liquidation. https://t.co/YQ6p9AZeYG
— Wu Blockchain (@WuBlockchain) July 15, 2023
Additionally, according to Santiment’s latest data, the crypto market, including XRP, is undergoing a price correction after a recent frenzy. However, there are predictions of another upswing for XRP on the horizon, anticipated to occur when the Fear of Missing Out (FOMO) sentiment transitions into Fear, Uncertainty, and Doubt (FUD) in the coming weeks.
According to the latest data from Coin Market Cap, there has been a significant decrease in trading volume over the past 24 hours. As of this writing, the volume had experienced a substantial decline of approximately 57%, amounting to around $5.6 billion.
Ripple’s price trend and short-term MVRV
Analyzing XRP’s daily timeframe revealed a remarkable rally of more than 73% on 13 July, propelling its price range to levels not seen since around February 2022. This surge pushed XRP into the overbought zone with great intensity.
However, the subsequent decline has mitigated the extent of this overbought condition. Between 14 – 15 July, XRP experienced a decline of nearly 12%, bringing its trading value to around $0.71 at the time of writing.
Source: TradingView
Additionally, as of the latest data, the 30-day Market value to Realized Value (MVRV) stood at approximately 26.8%. This marked a decline from the over 50% MVRV witnessed on 13 July.
The press state of the short-term MVRV suggested that XRP’s short-term holders were enjoying significant profit from their holdings.
Source: Santiment
How much are 1,10,100 XRPs worth today?
Correction before a potential bounce
The price analysis of Ripple, coupled with MVRV data, suggested that a price correction was likely on the horizon. The observed spike in price was characteristic of a “sell the news” phenomenon, where prices tend to decrease once the initial hype subsides.
Additionally, based on the press time trend, long positions appeared to face a higher risk of liquidation than short positions. Coinglass revealed that on 14 July, long positions experienced liquidations totaling over $14.7 million, while short positions faced liquidations of over $9 million.
