Is XRP’s Overtaking of USDC Sustainable?
XRP has recently experienced a significant market cap shift, moving up in the top rankings and surpassing the well-known stablecoin USDC. Despite its strong price performance, a considerable portion of XRP’s supply is currently underwater.
XRP Surpasses USDC
On April 9th, XRP ended its trading session with a slight price increase, pushing its value to around $0.61. The following day saw a more substantial uptrend, solidifying its position within the $0.6 price range. Despite a minor decline later on, XRP managed to maintain its bullish momentum.
Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest a weak but positive trend for XRP’s price performance.
With its recent market cap surge, XRP has now claimed the sixth rank among cryptocurrencies, surpassing USDC.
Concerns Linger for XRP Holders
An analysis of XRP’s Market Value to Realized Value ratio (MVRV) over the past 30 days reveals that a significant portion of holders are currently facing losses. The MVRV chart shows a downtrend since the end of March, with the value currently standing at around -7.4%.
Despite the market cap shift, traders who acquired XRP during this period have not seen favorable outcomes yet.
Decrease in Profitable XRP Supply
Another concerning metric is the declining supply of XRP in profit. Recent data indicates a consistent decrease in the amount of profitable XRP holdings. At present, around 81.2% of the XRP supply is in profit, a decrease from the previous figure near the end of March.
Can XRP Sustain Its Market Cap?
With a significant gap between XRP and USDC in market cap, any price decline could quickly reverse the recent progress. However, a closer look at the MVRV ratio suggests a potential for a future price increase, which could positively impact market capitalization.
In the long run, if XRP maintains its positive price trend, it could solidify its position above USDC and continue to grow.