Ripple: XRP continues to lead the alt rally as it outperforms Bitcoin
- XRP’s trades in the last week have exceeded that of BTC.
- As many rally to log profits, XRP distribution was underway.
Following last week’s ruling that Ripple [XRP] did not violate federal securities law by selling its XRP token on public exchanges, 21% of all trades completed in the market since then have been for XRP, crypto research firm Kaiko found in a new report.
Read Ripple’s [XRP] Price Prediction 2023-24
The decision from U.S. District Judge Analisa Torres propelled XRP to a gain of over 70% within 24 hours of the verdict, displacing Binance Coin [BNB] from the leading four cryptocurrencies in terms of market capitalization. At press time, XRP’s market capitalization stood at $38 billion, per data from CoinMarketCap
Further, Kaiko found that the recent uptick in XRP’s value caused it to rally above leading coin Bitcoin [BTC], regarding crypto trade volume in the last week. While XRP saw a 21% trading volume share during that period, BTC came behind with a mere 20% trading volume.
Contrary to what many assumed over the years of the protracted court action between Ripple and federal regulator Securities and Exchange Commission (SEC), Kaiko noted:
“What’s interesting about XRP is that the lawsuit and exchange de-listings did not have an overly negative impact on price or volume at the time. After XRP was de-listed from most U.S. platforms in 2021, the token maintained a strong offshore following. Korean exchanges, in particular, have seen huge volumes for XRP, with Upbit and Bithumb collectively processing $476bn in trades since the lawsuit.”
However, despite the significant surge in XRP’s trading volume in the last week, it remained at a 10-month high. According to Kaiko:
“Today, XRP is trading at 15-month highs, although volumes are at just 10-month highs, which suggests that despite this massively bullish catalyst, global trading activity remains subdued.”
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XRP traders renewing their belief in the alt
XRP’s price jump in the last week has caused a plethora of the alt’s traders to record profits on their investments. While XRP’s Market Value to Realized Value (MVRV) metric was positive before the price rally, the ruling propelled the on-chain metric to grow even further.
Between 12 and 13 July, XRP’s MVRV value increased by over 300%. At press time, this metric was 102.76%. This indicated that, on average, XRP’s current market value was 102 times higher than the average price at which it was last acquired or transacted by its holders. Therefore, holders are in a profitable position.
Source: Santiment
Likewise, XRP’s funding rates on leading exchanges Binance and BitMEX have been positive in the last week. This suggested that the token’s holders have continued to place bets in favor of a price rally.
Source: Santiment
However, XRP accumulation might be cooling, as gleaned from the movements of key momentum indicators on a daily price chart. Although still positioned above their respective neutral lines, XRP’s RSI, MFI, and CMF trended downwards, signalling a gradual fall in XRP accumulation as some traders’ “dump” the alt to take profit.
Source: ADA/USDT on TradingView
