Ripple’s asset, XRP, is showing tenacity, keeping close to $0.50. XRP has long been in relative stagnation, with support only from loyal holders. CryptoQuant data signals that some traders may return to XRP, expecting more active price moves shortly.
XRP stayed at around $0.49, trading close to the lower side of its range since the crash in April. During the past year, XRP peaked at $0.80 but failed to regain the $1 level. There are some expectations for at least a short-term rally from the current lows. The signal for XRP suggests open interest may repeat previous cycles that lifted the XRP price from stagnation.
Ripple’s token looks forgotten during this bull cycle despite its prominent exposure among the top 10 market cap assets. Even in its limited range, XRP is seen as a potential driver for a small rally. A bounce from the lows offers a relatively low-risk opportunity for some traders.
Read: Lawsuit Looms: Ripple Advocates Emphasize Importance of US Market Amid Ongoing Battle
XRP is also lagging behind other assets, and its summer rally is expected soon. Despite this, XRP awaits further volatility, which would quickly erase upward price moves.
Most assets turned to technical “sell” signals during the recent market downturn. In the case of XRP, the overall sentiment matches the market, with the exception of a short-term buy signal based on momentum.
Interest in XRP also picked up after the market price decoupled from other tokens. However, the hike above $0.50 was short-lived. Recent analysis also shows that XRP, along with Cardano (ADA) is still one of the most shorted tokens.
The price of XRP also correlates with the price of Stellar (XLM), a project that claims to achieve cheap interbank transfers through tokens.
Can Ripple burn its XRP escrow?
The big question about XRP is whether the asset can transform itself with a relatively low supply. The initial idea for XRP was to have 100B tokens to facilitate interbank transactions with intensive burning.
In reality, around 55B XRP are in circulation, with another 40B in the escrow account. The US Securities and Exchange Commission has not targeted the escrow directly but has spoken of potential asset burns or destroying account keys. However, Ripple has not agreed to destroy any assets.
As recently as June 2, another 500M XRP were moved from escrow addresses. Skeptics note that XRP rallies may be artificially induced to facilitate the selling of escrow funds.
XRP trading gets a boost from fiat pairs
XRP wrapped up its first year after relisting on Binance and Coinbase. Binance pairs remain the biggest source of liquidity for XRP.
Also read: XRP price prediction 2024-2030: Is $1 coming soon?
In June, XRP also shows significant support from niche fiat pairs, especially those targeting South Korean investors. For XRP, the Korean Won is the second most widely used asset after USDT. More than 15% of all XRP trades are against the KRW, with significant activity on Coinsbit and Bybit.
XRP is also known for its short-term rallies potentially caused by insider purchases. For some traders, XRP looks like a manipulated asset, where the price cannot break out organically.
Ripple’s XRP still pressured by SEC fines
Ripple’s security status is settled, and the asset can still rely on Binance trading. The project, however, is still under pressure to pay hefty fines of more than $106M. Ripple, Inc. insists on a lower fine ceiling at $10M, claiming that it did not hurt investors through its early XRP sales.
The ongoing demand for a fine happened after the US Securities and Exchange Commission changed its position on Ethereum (ETH) and imposed no fines or sanctions. In the case of XRP, the news of a waived $2B fine also failed to lift the price.
XRP investors and Ripple supporters are now caught in waiting for another court ruling to decide on the size of the fine. There is no set date for the decision, where Ripple once again attempts to shrink its fine to $10M.
The Ripple project continues to share ambitious plans on using its platform for tokenization, new stablecoins, and even NFT. But for now, the project has lagged behind the trend in crypto technologies and continues to be viewed with caution by traders and retail investors.
Cryptopolitan reporting by Hristina Vasileva
