Heavy selling on offshore exchanges behind XRP decline, as investors eye moves to key support and resistance levels.
The euphoria that followed XRP’s recent highs and the landmark ruling in July has eventually faded. The fifth-largest cryptocurrency by market capitalization is down 46% from recent highs, losing more value than other altcoins offer the same timeline.
However, recent reports have uncovered the reason behind the decline, while the charts reveal support and resistance levels that XRP holders must watch out for as market conditions evolve. Inevitably, broader market conditions and pending legal issues may have the final say on where XRP ends up in the long term.
Heavily Selling Pressure From Offshore Exchanges Behind XRP Decline
As previously reported by The Crypto Times, August was an excellent month for XRP as its trading volume soared as high as $462.8 million. The figure was significantly higher than volumes for alt majors such as BNB, SOL, ADA, and LTC.
The increase in trading volume, however, did not translate to a price increase for XRP. Instead, the asset succumbed to heavy selling pressure. According to data from Kaiko Research, investors on offshore exchanges, including OKX and Upbit, led a sell-off in XRP.Â
Upbit and OKX recorded 55% and 54% of sell-order shares, respectively, in August. The selling pressure on Upbit was most notable as the South Korea-based exchange controls a significant portion of the global XRP trading volume. Hence, the data would indicate that South Korean investors who largely led the XRP uptrend in July have also locked in profits and reevaluated their exposure to the asset.
On the bright side, both Binance and Coinbase saw higher buying demand for XRP during August. The surge in XRP interest on Coinbase may be attributed to US investors regaining exposure to the asset. Yet, the increase in US demand and high buying pressure on Binance was not high enough to stop XRP from dropping 17% against its BTC pair in August.
Support and Resistance Levels to WatchÂ
The price of XRP hovers around $0.50 at the time of writing, with the asset maintaining a tight range over the past 72 hours. Analysts underline $0.43 and $0.35 as the levels to watch if market conditions remain bearish in the coming days.
#XRP Short Term Analysis-Daily TF (UPDATE):
What’s on the horizon? Share your thoughts!?
A) Are we looking at a potential dip to 0.43c or even 0.35c? Could this be the ultimate shakeout before a rebound? ??
B) Or is #XRP gearing up for a spectacular ascent, possibly… https://t.co/GyNXNcyQb1 pic.twitter.com/tRYf6Qxn0L
— EGRAG CRYPTO (@egragcrypto) September 4, 2023
A reversal in market fortunes, though, could propel XRP above $0.60, delivering gains to investors who buy at current price levels. Meanwhile, a move above $0.67 would ultimately unlock new territory and give XRP a shot at reaching new highs.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. 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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