XRP price climbed to a high of $0.6685 on Tuesday, before correcting to $0.6410. XRP price appears to be on an uptrend following the recent rally in Bitcoin, sustaining above the psychologically important level of $0.60.
The recent XRP rally seems to be sustained by large wallets, which have accumulated XRP since the beginning of March, according to on-chain data. Meanwhile, while retail traders appear to be taking profits from the recent price increase.
Also read: XRP price eyes $0.70 target, attorney states Ripple’s influence on the altcoin is on a decline
XRP holdings of different cohorts. Source: Santiment
XRP Network Realized Profit/Loss. Source: Santiment
XRP price is in an uptrend, close to its December 2023 peak of $0.70. The altcoin’s price increased on Tuesday, hitting the $0.6685 level, a new yearly high. XRP price’s uptrend is supported by both the Moving Average Convergence/Divergence (MACD) indicator and the Awesome Oscillator (AO).
The green bars on the two indicators signal that there is positive momentum supporting the altcoin’s uptrend. XRP price could hit its $0.70 target before making its way to the November 2023 peak of $0.75.
XRP/USDT 1-day chart
However, a daily candlestick close below $0.6293, which aligns with the 78.6% Fibonacci retracement of its rally to $0.6685, could invalidate the bullish thesis for XRP. In case of a fall, the altcoin could find support at the 61.8% Fibonacci retracement at $0.5985.
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.