- Ripple traders realized $330 million in profits on September 1, the largest single profit-taking event in twelve months.
- XRP crumbles under selling pressure, slips to $0.5326, new monthly low for the altcoin.
- XRP trades at $0.5517 at the time of writing, erasing 1% value on the day.
Ripple (XRP) traders have taken large-scale profits on their holdings at the beginning of September. The mass profit-taking contributed to selling pressure on the native token of the XRP Ledger.
XRP slipped to a monthly low of $0.5326 early on September 4.
Daily digest market movers: Ripple crumbles under massive selling pressure in September
- Data from crypto intelligence tracker Santiment shows a large positive spike in the Network Realized Profit/Loss metric. This metric tracks the net realized profit/loss of all traders on a given day.
- On September 1, XRP trades realized $330 million in profits, but since then profit-taking has slowed down.
 [19.20.06, 04 Sep, 2024]-638610591489955476.png)
XRP Network Realized Profit/Loss vs. price
- Transaction volume has dipped to a low of 434 million XRP, per Santiment data. On September 1, Ripple transaction volume peaked at 3.18 billion XRP and has declined since then.
- The decline in transaction volume is likely a sign of slowing demand among market participants. This supports a bearish thesis for the altcoin.
Technical analysis: XRP could sweep liquidity at $0.51
XRP is likely to extend losses to the August 6 high of $0.5188. The decline would mark a 6.27% correction from the current price level. XRP could sweep support at $0.50, a key level for the altcoin since mid-July.
The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars under the neutral line. This implies negative underlying momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close above the upper boundary of the Fair Value Gap (FVG) between $0.5188 and $0.5785 could invalidate the bearish thesis. In that case, XRP could rally toward the psychologically important $0.60 level.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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