- XRP’s 1% market depth on Gemini has recovered.
- As the price drops, the demand for the altcoin has dropped
The amount of Ripple [XRP] available for buying and selling on cryptocurrency exchange Gemini, within the 1% price range, has risen and is now stable at around 150,000 XRP, research firm Kaiko found.
Last week, #XRPThe 1% market depth on Gemini saw a brief dip as market makers pulled back after a rapid $50 price spike.
Good news: the depth has recovered and is stable around XRP 150,000. pic.twitter.com/ORu9BmsJCc
— Kaiko (@KaikoData) August 15, 2023
The 1% market depth on the exchange suffered a brief decline on Aug. 10. This was after the price of the altcoin skyrocketed to $50 trading at a differential from spot markets on other exchanges.
Read XRP’s 2023-24 Price Forecast
The market depth of an asset refers to the supply and demand of that asset at different price levels on a trading venue. The sudden jump in the value of XRP on Gemini was likely due to the low liquidity on the exchange following the re-listing.
Gemini relisted the token after a federal judge ruled in July that offering and selling XRP on digital asset exchanges did not meet the definition of an investment contract.
Xcited to announce $XRP is now available for trading on Gemini. pic.twitter.com/E9Xiv8BTo3
— Gemini (@Gemini) August 10, 2023
During this period, a buyer “caught a fat-fingered market order,” which was executed by an unsuspecting buyer, causing the price to rise.
the order book is very thin i watched all day at one point there was nothing for sale someone put a lot up for sale for $50.00 and someone must have grease fingered a market order and then they were the proud owner of $50 XRP , this was from a few hours ago pic.twitter.com/W5AoG2eV0r
— John S (@lifebythedrop63) August 11, 2023
Tthis temporarily prevented market makers from trading on the exchange until Gemini resolved the issue.
Currently traded at $0.611213 on the exchange, Kaiko confirmed the availability of approximately 150,000 XRP for buying and selling within the 1% price range. This indicates that supply and demand of XRP within this specific price range has become more balanced and stable on the cryptocurrency exchange.
Slow down, XRP epee
After the ruling was made on July 13, the price of XRP surged. It became increasingly profitable as the MVRV ratio surged to a high of 121% on July 19.
According to Santiment, this metric measures the ratio between the current price and the average price of each coin/token obtained. The more the ratio increases, the more people will be willing to sell as the potential profit increases.
Realistic or not, here is the market cap of XRP in terms of BTC
However, as the price of the alt started to fall, the MVRV ratio also fell sharply. At the time of writing, it stood at 62.34%. While still overvalued, the fall in the MVRV ratio showed that the number of XRP trades that would yield profits has been slowly declining over the past month.
Source: Sentiment
On the daily chart, the token’s accumulation has plummeted. At the time of writing, XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) stood at 39.50 and 38.61, respectively. Positioned below their respective centerlines, selling pressure outweighed accumulation among daily traders.
Source: XRP/USDT in trade view
