Ripple price weekly analysis: Midweek selloff
Despite encouraging signs of stability, a strong midweek selloff has prompted concern in the market for the roll out of xRapid.
- Ripple price stabilises as market mulls Ripple Labs strategy
- Ripple price continues to show much needed stability
- Market cap drops 20% in midweek selloff
As a midweek selloff was intensifying over the week, Ripple Labs released some documents assisting the market to better understand the technology and better assess Ripple Labs’ strategy going forward.
This may have contributed to a stabilisation of prices, as the close of the week drew near. In recent weeks critics of Ripple (XRP) have been vocal and more stability around XRP will go some way to silencing the critics.
Although there was good price stability at the beginning and end of the week, XRP’s market cap lost 20% of its value. That will continue to be a blight on confidence in XRP as price stability is necessary for successful rollout of the xRapid technology going forward for Ripple Labs.
XRP continued last week’s show of stability, not trading below US$1.14 for two days before beginning to slide.
XRP hit the bottom this week at US$0.90 during a midweek selloff but some livened trading volumes saw XRP stabilise.
Some stability returned to XRP as the last two days of the trading week showed a range between US$0.93 and US$0.95. Although at a strong discount from the beginning of the week, the market will be encouraged to see continuing stability in the price of XRP.
Market cap for XRP was another rough and tumble week starting out at US$44.3 billion, the midweek selloff saw XRP market cap drop 20.76%.
The carnage was brought to a halt at US$35.1 billion, allaying fears of a more substantial decline in XRP market cap. As it was, XRP’s recovery only managed to take its market cap to US$37.1 billion from the week’s trough.
24-hour trading volumes in XRP have been lack-lustre. Aside from an early week spike of US$1.5 billion, XRP trading volume has hardly reached over US$1 billion throughout the remainder of the week.
A positive will be the relative stability of the trading volumes. Rather than spiking erratically, the drops in trading volume have been gradual, going from US$1.5 billion down to US$555 million.
Those figures are now taking place over a period of days, rather than hours, as markets had been accustomed to over previous weeks.
In those weeks previous, drops in trading volume had also occurred along with large drops in the price of XRP. This week has shown that not to be the case because XRP has traded in a stable price range. With the week drawing to a close, trading volumes are dropping further to US$330 million, as at the time of writing.
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