- 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.
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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.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
