XRP is Waking Up But Liquidity in All the Major Corridors Are Taking A Hit
The fourth-largest cryptocurrency XRP isn’t doing really well. Not only it is one of the worst-performing top coins of 2020 with over 6% negative returns but is still down more than 95% from its all-time high of $3.92.
But it might start picking up finally. Today, XRP has jumped nearly 4% and is currently trading at $0.185.
“Suddenly, the majors start waking up. LTC, EOS, and even XRP are showing great candles,” tweeted trader Crypto Michaël.
According to him, XRP needs to reclaim $0.195 for a test of $0.23 which should put it back above 100-day and 200-day MA.
“For this one; back to support,” he said adding “Similar to BTC pair -> needs to reclaim 2075 and then 2400 sats test likely.”
Adding pressure to the price is the 415 million XRP that is moved by the $2 billion PlusToken Ponzi scheme. Some of these XRP are also sent to exchanges viz. Huobi, OKEx, and HBTC.
PlusToken funds were moved again today on the XRPL. Here is an update: https://t.co/XbeTGO9GPl
— Thomas Silkjær (@Silkjaer) June 19, 2020
Amidst this, XRP holders are partaking in some accumulation. Small to big XRP holders, all bought more XRP but the amount added has been relatively low.
As per the rich list, the top 100 accounts own over 69% of XRP in circulation at 35 billion.
Declining Liquidity Across the Board
XRP may be ready to move but its inaction for a long time has spilled onto its ODL indices. The liquidity index for Bitso, XRP/MXN, one of the most active corridors has fallen to its lowest numbers.
On June 1st, 2020, it hit its all-time high of 37.3 million which has declined to 2.3 million on June 25th, a new low for 2020.
The market liquidity here covers more than just trade volume and helps in assessing “net” liquidity provision.
The case is the same for all the other Liquidity Indexes.
Bitstamp XRP/EUR, has fallen to 7.3 million, last seen in March 2020, from the high of 35.7 million earlier this month. Coin.ph XRP/PHP climbed to 11.5 million in April and is currently at just 1 million, back to early January levels. XRP/AUD market tumbled to 992k, down from 16 million high last month, as per Liquidity Index Bot.