The cryptocurrency markets do not look to be in great shape as of right now. All top currencies have seen a massive dip in the past two days, although the momentum may finally turn in favor of Bitcoin and consorts once again. With the XRP price fighting for control over $0.75 as of right now, an interesting trend is beginning to form.
The XRP Price Momentum is a Strong Indicator
Even though a lot of cryptocurrency enthusiasts dislike Ripple and its XRP asset, it remains one of the bigger markets ranked by market cap. There’s a very good reason for that, as a lot of speculators and investors want to be exposed to the XRP price. As such, this particular currency’s value is a good indicator as to where all other cryptocurrencies might head next. So far, it seems as if gaining solid support remains a bit problematic, even for the XRP price.
To be more specific, the XRP price has lost a fair bit of value compared to the $0.91 a few days ago. At its lowest, the value per XRP even dipped to $0.77, although it is possible that may not necessarily be the bottom. If the XRP price were to hit $0.75, it will need to find solid support fairly quickly. Whether or not that cna or will happen, is a bit difficult to predict right now. The overnight decline by 6.04% doesn’t instill a lot of confidence in this regard.
Another thing potentially hurting the XRP price in the long run is the ongoing decline against Bitcoin. It is not uncommon for altcoins to lose value against Bitcoin when the markets turn bearish. However, a currency such as XRpc an ill-afford to lose 3.77% against BTC when the going gets tough. Now is the time for alternative currencies and assets to make a positive impact in this regard, but that is much easier said than done.
With $592.71m in 24-hour trading volume, it appears the demand for XRP is also slowing down a bit. Considering how the overall cryptocurrency trading volume has dropped below $24bn again, such a trend is only to be expected. If the XRP trading volume can pick up the pace just a tiny bit, the price momentum may slowly turn around. That will also largely depend on how the Bitcoin price evolves in the coming hours and days.
The way things stand right now, most of the XRP trading volume is generated by Bithumb. Bitbank is in second place, and Binance closes out the top three. One cna also see Bitfinex and Upbit in the top five, which makes for a rather interesting mix. This also means there are four fiat currency pairs in the top five for Ripple’s asset, which should have a positive impact on the current XRP price in the days to come.
Whether or not the XRP price can remain above $0.75 for today, will be interesting to keep an eye on. While the current price seems to have found solid support, the cryptocurrency and digital asset industry remains very unpredictable first and foremost. That situation will not change overnight either, which is part of what makes this industry so exciting to keep an eye on.