Markets
XRP Market Liquidity Hits $3 Billion as Bulls Eye $0.70 Breakout
XRP price finally broke above $0.65 on July 31, reflecting a 70% growth performance over the past 20 trading days, with on-chain data showing bulls capitalizing on increased market liquidity following Trump’s recent bullish comments.
XRP Price Surges Above $0.65 For First Time In 3 Months
XRP continued its upward trajectory with a sudden 8% rally on Wednesday, July 20, 2024. Based on recent events and market narratives, the XRP price surge remains closely tied to by Donald Trump comments at the Nashville Bitcoin conference over the weekend.
Since 2020, Ripple Labs has been embroiled in lengthy legal disputes with the current SEC regime led by Gary Gensler. However, with Joe Biden Withdrawing from the re-election race, Trump’s bullish stance on cryptocurrencies has boosted investor sentiment toward struggling assets like XRP, which have historically depreciated due to perceived regulatory risk and legal sanctions.
The yellow shaded area in the chart above shows how the XRP price gained 10.5% in the 24-hour period of July 31. But looking further, this means that the XRP price has increased by a whopping 72% in the last 20 trading days, starting on July 5, 2024.
Notably, this is the first time that XRP price has traded above $0.65 in 3 months, starting on March 25. However, on-chain data trends suggest that XRP may be poised for further gains in the days to come.
XRP Deposits on Binance Surpass $2 Billion in 72% Rally
So, this paints a bullish picture that is closely tied to recent developments in the 2024 US presidential campaign. With Donald Trump’s support for Bitcoin echoing across altcoin markets, on-chain data shows that XRP traders have responded by bringing unusual levels of liquidity to the markets.
The cryptoQuant chart below tracks the total number of coins investors currently hold on exchange-hosted wallets and trading platforms. This provides insight into the level of short-term market liquidity available to execute trades.
Looking at the chart above, we see that XRP’s current price rally was preceded by an unusual spike in exchange deposits. Traders held a total of 2.68 billion XRP coins on the world’s largest cryptocurrency exchange, Binance, as of July 1.
The latest data, from CryptoQuant, shows that traders with deposits on Binance surpassed 3.069 billion XRP on July 29. Zooming out, this represents a 75 million (4%) increase in short-term market supply over the past 30 days.
Evidently, due to the increased demand triggered by Trump’s recent bullish statements, this increase in liquidity has helped accelerate the current 72% price increase.
It also suggests that a large number of retail traders have registered on Binance and are once again showing interest in XRP, as the perception of regulatory risk is decreasing.
If this market momentum continues, XRP could now advance towards the $0.70 mark by August 2024.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal views of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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