- Bitcoin price drop under support at $55,000 ushered a market-wide correction in top altcoins, including XRP.
- Ripple erased all gains from the past fifteen months and hit $0.40 early on Friday.
- XRP extended losses by 7%, down to $0.38 on Friday.
Ripple (XRP) piled losses alongside top altcoins and Bitcoin early on Friday. The German government’s Bitcoin transfers and Mt.Gox payback to creditors have created uncertainty among traders and increased the pressure on Bitcoin and altcoins like XRP.
The latest developments in the Securities and Exchange Commission (SEC) vs. Ripple lawsuit are skewed in favor of the payment remittance firm, with Judge Amy Berman Jackson treating Judge Torres’ 2023 ruling as precedent in the SEC vs. Binance suit.
Daily Digest Market Movers: Ripple hit by steep correction amidst crypto bloodbath
- Ripple erased its gains from the past fifteen months, falling to a fresh 2024 low of $0.38, early on Friday.
- XRP trades at $0.39, at the time of writing, wiping out nearly 7% of its value on Friday.
- The developments in the SEC vs. Ripple lawsuit support Judge Torres’ ruling that XRP is not a security in secondary market sales.
- Judge Torres’ 2023 ruling, which offered a partial victory to Ripple in the longstanding legal battle with the regulator, was strengthened by Judge Amy Berman Jackson using it as precedent in the SEC lawsuit against Binance.
- Ripple traders have been shedding their holdings at a loss since April 2024, per Santiment data.
 [14.59.33, 05 Jul, 2024]-638557794678714872.png)
XRP NPL and Supply on exchanges
Technical analysis: XRP dips to lowest level in fifteen months
Ripple is in a downward trend since March 11. The altcoin dipped to its lowest level in fifteen months, at $0.38, early on Friday. The altcoin erased gains from earlier in 2024 amidst a marketwide correction in cryptocurrencies.
Ripple could find support at the March 21, 2023, low of $0.37 if it extends losses further. XRP is down 7% on Friday.
XRP/USDT daily chart
On the contrary, a daily candlestick close above $0.4611 could invalidate the bearish thesis and push XRP higher toward the next psychologically important resistance at $0.50.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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