XRP Market Value: A Recent Decline
Over the past week, XRP has experienced a substantial decrease in market capitalization, shedding $16.47 billion. According to CoinMarketCap data accessed by Finbold, XRP’s market cap fell from $185.15 billion on October 3 to $168.68 billion by October 10.
XRP’s Weekly Performance
During this period, XRP’s market cap dropped by 7%, pulling its price down to $2.81. This decline occurred even as the broader cryptocurrency market maintained a relatively stable position.
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Trading Volume and Market Dynamics
The decline in XRP’s value became evident after October 3, following a temporary surge in trading volume, which peaked at $7.46 billion. However, this was soon followed by increased selling pressure. In the last 24 hours, trading volume has decreased to $4.92 billion, marking a significant 34% reduction from the previous week’s peak. This shift indicates a transition from aggressive speculation to more cautious market behavior.
Currently, XRP’s volume-to-market cap ratio stands at 2.93%, signaling decreased liquidity compared to earlier in the quarter.
XRP Price Dynamics
Despite the recent downturn, XRP remains a key player in the cryptocurrency market. Its fully diluted valuation (FDV) is still robust at $281.7 billion, indicating that investors are factoring in long-term utility and potential ETF developments, even as short-term market activities wane.
The circulating supply of XRP is stable at 59.87 billion tokens, which accounts for nearly 60% of the maximum 100 billion XRP tokens available. The number of XRP holders has increased to 478,000, reflecting ongoing interest from both retail and institutional investors, despite the price fluctuations.
XRP Chart Analysis
From a technical standpoint, XRP has managed to hold its ground at the $2.78 support level, aligning with the 78.6% Fibonacci retracement zone. The Relative Strength Index (RSI) is currently at 41.9, indicating neutral momentum following a consistent decline over the past week. Meanwhile, the MACD’s negative histogram (-0.0068) suggests that bearish momentum is weakening, though not yet fully reversed.
A “death cross” pattern has developed as the 30-day simple moving average has dipped below the 200-day SMA. This is traditionally viewed as a bearish signal, potentially limiting immediate upward movements.
Potential Market Outcomes
Traders are now presented with divergent possibilities. A rebound above $2.90 could spark short-covering, with the next critical target being $2.94, corresponding to the 50% Fibonacci resistance level. Conversely, a drop below $2.72 might lead to cascading liquidations in leveraged positions, potentially pushing XRP down to the $2.65 region.
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