Ripple price weekly analysis: Market jitters
Ripple sees market jitters as some fundamentals show signs of trouble.
- Bloomberg publishes article critical of XRP
- Ripple experiences wild price swings undercutting its value in cross-border payments
- Trading volume drops back to levels not seen since December bull run
Ripple (XRP) has kept the exchanges busy this week with intense market volatility. Some negative press and wild price swings have dampened confidence in XRP’s use as a cross-border payments currency. Trading volume has fluctuated wildly during the week and tanked to lows not seen since before the December bull run on the cryptocurrency market.
XRP’s price volatility has not gone away this week. Beginning the week at US$1.38, XRP began a sharp decline dropping to US$1.16 in early week trading according to trading information released by CoinMarketCap. In less than 48 hours XRP had rebounded all the way up to US$1.43.
The rise was short-lived and soon the price of XRP slingshotted downwards to a new weekly low of US$1.15 during midweek trading.
The craziness didn't stop there as XRP proceeded to add a 17.2% price increase in 24 hours to close out the week. Rising from the weekly trough of US$1.15, XRP put on an impressive US$0.21 run and as at the time of writing, upwards pressure on XRP seems to be persisting.
XRP’s market cap has also weathered its ups and downs this week. XRP’s market cap began the week at US$53.4 billion dropping sharply with its price in the early trading week to US$45 billion.
This process was repeated again throughout the week, with XRP’s market cap bottoming out at US$44.4 billion after a midweek high of US$55.5 billion. Since the week’s trough of US$44.4 billion, XRP’s market cap has again rebounded and has reached US$55.3 billion, seemingly, with upwards pressure as the week closes out.
24-hour trading volume
Trading volume has been the real story for XRP this week, featuring spikes equalling monthly highs but also lows not seen since before the December bull run on cryptocurrency prices.
Beginning the week at around US$2.93 billion worth of 24-hour trade XRP began slumping as the sharp drop in price set in. There is a noticeable delay in the increase of trading volume after the week’s early price drop, which was recorded to be as high as US$3.3 billion.
Since then the bottom has fallen out of XRP’s trading volume falling to below US$600 million. That is a low that hasn't been seen since before the run up to the new year, which saw a huge rally in the broader cryptocurrency market.
There was a heavily critical article published by Bloomberg discounting the value of XRP and its less than enthusiastic adoption from major banks around the world. Despite this, Ripple Labs blockchain technology still has lots of interest around it. However, the space for cross-border payments is becoming increasingly competitive.
This issues has previously been noted and confidence in XRP does seem to be to waning accordingly. The ongoing price volatility of XRP is leading to a challenging situation for banks to use XRP. This is despite the apparent strength of Ripple Labs and its underlying blockchain technology.