Ripple’s XRP-USD has achieved a significant milestone, surpassing Circle’s USDC (USDC-USD) in market capitalization. Despite a minor value dip, XRP has held its position in the $0.60 value range, demonstrating resilience and instilling investor confidence.
On-Chain Data Suggests Bulls Are Satisfied
The current market capitalization gap between XRP and USDC is over $1 billion, a significant margin that could either solidify XRP’s lead or rapidly diminish due to the inherent volatility of the crypto market. However, on-chain analysis suggests that bulls are satisfied with XRP’s current position, even if it experiences a downward shift.
According to on-chain analytics firm Santiment, approximately 90% of XRP holders are currently in profit – a ratio that stands out among the top 20 market cap cryptocurrencies, highlighting the potential for returns with XRP.
Additionally, Santiment’s on-chain flow data shows a drop in inflows to exchanges and an increase in outflows. Many analysts view inflows to exchanges as bearish because XRP moving to an exchange is often there to be sold. Conversely, outflows are viewed as bullish because XRP taken off an exchange typically goes into wallets that are not on exchanges, indicating long-term bullish investor sentiment.
Technical Analysis of XRP
From a technical analysis perspective, XRP continues to trudge higher. Ever since May 2023, XRP’s price action shows its highs getting lower and its lows getting higher—a clear sign of market congestion and consolidation. For bulls and bears, it’s not clear what kind of fundamental data would generate a major breakout from this consolidation.
Bears and bulls each have price ranges they are watching that could confirm an end to the congestion. For bulls, that value area is a weekly close at or above $0.666. For the bears, it’s a weekly close at or below $0.496.
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