Skip to main content

XRP Market Value Shake-Up: Total Realized Cap Dives Down Amid Choppy Price Action

With the significant bearish pressure that has struck XRP, its market dynamics have shifted toward a negative outlook, causing several key metrics to plummet. One of the crucial metrics that has recently declined from higher levels is the Total Realized Capitalization by Age.

Overall XRP Realized Cap Decreasing

XRP’s market dynamics are demonstrating growing weakness, as indicated by a decline in its total Realized Cap. The drop coincides with a wider wave of volatility engulfing the cryptocurrency market, and XRP’s price fluctuations reflect holders’ increasing skepticism.

Glassnode, a leading financial and on-chain data platform, reported the shift in the total realized cap, signaling increasing selling pressure and waning investor conviction. With a waning realized cap and ongoing price fluctuations, the altcoin‘s price might witness a prolonged correction in the short term.

Prior to the drop in realized cap, Glassnode noted that the metric experienced a substantial spike during the massive surge in XRP’s price in February due to news regarding Ripple’s victory in its lawsuit against the United States Securities and Exchange Commission (SEC).

Data from the platform shows that the realized cap almost doubled from $30.1 billion to $64.2 billion, with $30 billion mostly coming from new investors. This short-term increase in capital points to a retail-led impetus, which has now subsided as inflows from new investors have decreased since February.

XRP

Taking a look at these investors’ behavior from the New Investor Realized Cap Share metric, holders supply greater than 6 months currently accounts for about 62.8% of the realized cap, which was previously at 23%.

According to Glassnode, this steady concentration of new holders is indicative of significant retail participation. While this might be an encouraging development, it also presents the risk of fragility because many investors have high-cost bases.

Glassnode further delved into XRP’s Profit/ Loss Ratio, highlighting a persistent decline in the metric since January this year. A drop in this measure implies that most holders are presently at a loss. It is often considered a sign of weak conviction, conditions seem more precarious and top-heavy with money being concentrated in new hands.

Will The Altcoin Recover The $3.30 Mark Shortly?

Without a doubt, XRP appears to have lost its bullish momentum, dropping by nearly 50% from its current all-time high. However, crypto analyst and trader Javon Marks claims there is still room for the token to grow as he foresees a potential rebound to the $3.30 level.

Javon Marks stated that the altcoin’s MACD is presently approaching a breaking point in addition to holding a crucial regular bullish divergence. Given the positive development, bulls might make a comeback with dominance and cause prices to resume their current major upward trend to $3.30 and beyond.

XRP

from Bitcoinist.com https://ift.tt/KOuegJz
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more