XRP Price Plunge: Understanding the Recent Drop
XRP has seen a decline in value after its recent bullish run that pushed it towards the $0.6 mark. This drop was accompanied by a surge in trading volume and alterations in the total supply in profit within the last 24 hours.
XRP Witnessed an 8% Decline
On the 5th of March, XRP faced a significant price dip, as indicated by a daily chart analysis. The day began at around $0.64, but a sharp 8.6% decline pulled it down to approximately $0.59.
An analysis of the chart revealed that such a substantial drop had not been observed for more than six months. Additionally, it brought XRP out of the overbought territory, as suggested by the Relative Strength Index (RSI).
As of the latest update, the price has shown signs of recovery, registering a 3.8% uptick. It has managed to climb back to the $0.6 range, trading at about $0.61.
Moreover, the RSI, which had dipped below 60 during the decline, has now returned close to 60 at the time of writing.
XRP Trading Volume Hits a Six-Month High
Recent days have witnessed a notable rise in trading volume, highlighted by Santiment’s volume metric. While there have been fluctuations in volume over the past few weeks, the trend has been upward in the last 48 hours.
On the 5th of March, XRP’s volume surged to approximately $4.02 billion, with the latest figures standing at around $4.3 billion, potentially reaching $4.9 billion.
This surge in volume during the price drop on the 5th of March indicated a dominance of sellers. However, the most recent data reflects a shift, with buyers taking charge of the volume, contributing to a price rebound as volumes continue to rise.
MVRV and Profitable Supply Display Market Dynamics
Prior to the price correction on the 5th of March, XRP’s total supply in profit was close to 90%. Following the drop, this figure decreased to approximately 84% at the time of writing.
The supply in profit data suggests that currently, around 84 billion XRPs are in a profitable position compared to the nearly 90 billion before the price adjustment.
Examining the 30-day Market Value to Realized Value ratio (MVRV) unveils fluctuations. On the 4th of March, the XRP MVRV was at about 11%. However, with the price decline, it fell to around 1%. Presently, it has rebounded to about 5%, showcasing an active market response to recent price shifts.