Is It a Good Time to Buy XRP? On-Chain Data Suggests a Rise in Price
In the first week of September, Ripple (XRP) experienced a surge in trading volume on major US exchanges, indicating a potential reversal in price trends. On-chain data also speculates that this increased trading activity may boost XRP’s spot values in the coming weeks. It’s worth noting that XRP had a significant jump in July, reaching $0.8, following a favorable court ruling. However, in August, it dropped by 25% and currently stands at $0.52 due to selling on offshore exchanges. Additionally, XRP’s Open Interest has also declined, although it is now 8% higher.
XRP Adoption in the US: Higher Trading Volume but No Price Increase
Surprisingly, on-chain data reveals that XRP adoption has been increasing in the US, particularly on Coinbase, a popular exchange. In August 2023, XRP was traded significantly more compared to other cryptocurrencies. The average trade volume for XRP in the past month was $462 million, surpassing similar cryptocurrencies like SOL and BNB, which had volumes of $128 million and $121 million, respectively. However, despite the increased trading, XRP’s prices have not seen a significant rise.
Data from Kaiko indicates that Binance had the highest selling volume, while buying increased on Coinbase. XRP has surpassed the top 10 crypto assets in terms of buying on US exchanges. This change in buying behavior can be attributed to a court ruling in July 2023, which declared that XRP sales to regular buyers were not securities. The community’s support and claims by John Deaton that XRP is the next Bitcoin have also contributed to this shift.
XRP Inflows: A Sudden Standstill
CoinShares has reported a sudden halt in inflows into XRP-focused investment products, following a streak of $2.7 million inflows over the past four weeks. Despite this pause, XRP continues to be a popular choice among crypto-oriented investment products, with cumulative inflows exceeding $13 million. Among traditional investors, only Bitcoin, Short Bitcoin, and Solana have surpassed XRP in popularity.
What’s Coming Next for Ripple?
In the latest update, Ripple has opposed the SEC’s attempt to appeal a court decision in a filing with the United States District Court for the Southern District of New York. Ripple’s lawyers argue that the SEC is questioning the court’s application of the Howey test, a legal test used to determine if something is a security. Regardless of the appeal’s outcome, Ripple and the SEC are prepared to go to trial in the second quarter of 2024, as long as the current court decision remains unchanged.
All eyes are now on Ripple’s Proper Party event in NYC on September 29th, where the company may announce an SEC settlement or IPO to restore investor confidence. Increased mainstream adoption will undoubtedly aid the firm in either scenario. However, the SEC has requested a pause in its lawsuit against Ripple while they appeal the court’s decision regarding XRP’s status. Ripple disagrees with this request.
Hot Take: XRP at a Crossroads, Future Uncertain
XRP finds itself at a crucial juncture, with mixed signals in terms of trading volume, price trends, and legal battles. The heightened trading activity on major US exchanges suggests a potential rise in XRP’s spot values, but this has yet to be reflected in the prices. Ripple’s opposition to the SEC’s appeal and the upcoming Proper Party event add further anticipation and uncertainty to the equation. Whether XRP will regain its previous highs or face further challenges remains to be seen, making the decision to buy or hold XRP a precarious one.
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