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XRP, the digital currency associated with Ripple Labs, has been making headlines with its recent price rally. However, a report suggests that the hype surrounding its performance might be overstated, as market data paints a different picture.
Despite a positive legal ruling and a robust community, XRP seems to struggle to gain the same level of confidence as Bitcoin (BTC) and Ethereum (ETH) among investors.
Liquidation data from CoinGlass reveals that in the past 24 hours, approximately $4.20 million worth of XRP has been liquidated. Interestingly, the short positions accounted for a mere $66.13K in losses, while long traders recorded a substantial $2.09 million loss.
Source: Coinglass
Liquidation Data Raises Questions On XRP’s Price Rally
This data underscores the fact that the recent ruling by Judge Analisa Torres, which classified XRP as not a security when traded on exchanges, failed to ignite significant bullish sentiment for the cryptocurrency.
Comparing this liquidation data with that of Bitcoin and Ethereum reveals a stark contrast, further suggesting that XRP is still considered a less promising digital asset. This contrast raises doubts about the bullish predictions made by some experts following the recent legal ruling. It appears that despite its strong community support, XRP’s growth indicators are not aligning with the optimism that has surrounded it.
XRP market cap currently at $28.4 billion. Chart: TradingView.com
Currently priced at $0.529 according to CoinGecko, XRP has seen a 5.0% growth in the past 24 hours and a seven-day rally of 7.4%. Despite these gains, market observers remain cautious about the coin’s long-term potential.
XRP Trajectory: Contrasting Perspectives
In a separate report, there is a contrasting perspective that suggests XRP could still experience significant growth in value. This report highlights the fact that during the prolonged legal battle with the US Securities and Exchange Commission that began in December 2020, XRP has shifted its focus to overseas markets.
This strategic move has led to impressive client wins in emerging markets, where Ripple’s payment platform has the potential to make a substantial impact.
XRP seven-day price action. Source: Coingecko
These client wins have paved the way for promising developments, particularly in projects related to cross-border payment systems and Central Bank Digital Currencies (CBDCs). These initiatives hold the potential to drive the long-term value of XRP, as they expand its use cases beyond speculative trading.
XRP’s recent price surge may have garnered attention, but skepticism remains prevalent in the market. While some believe in its potential for further growth, the current data and market sentiment suggest that XRP still has hurdles to overcome to solidify its position as a top-tier digital currency.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
