- Despite an increase in transaction volume, Ripple’s XRP was unable to prevent a price drop.
- The transaction volume on the network climbed to February levels this month, renewing a yearly record.
- Whale interest indicates that price increases could begin with the end of the summer, thanks to closures above $0.51.
The cryptocurrency market didn’t have a great start in September, and historical data raises concerns for the remaining days. The last time we saw September hosting a price increase for BTC was back in 2016. In the intervening years, the price has dropped by at least 7%, indicating that September may not be a good period for cryptocurrencies in general.
Analysis of XRP Coin
According to on-chain data research firm Kaiko, Ripple’s price lost most of its gains from August despite an increase in transaction volume during this period. Following US Judge Analisa Torres’ decision that Ripple did not violate federal securities laws by selling its XRP token on public exchanges, the token’s value rose to $0.93 in July. This decision led to an over 70% increase in XRP’s value within 24 hours of the ruling and caused it to break away from the top 4 cryptocurrencies by market value, including Binance Coin. Although short-lived, XRP Coin’s performance was exciting in July. However, XRP’s price closed at $0.70 in July and showed a decline throughout August. As of writing, it was signaling further losses, finding buyers below the critical $0.5.
Ripple (XRP) Coin Price Target
Despite the value decline in the past few weeks, XRP reached the highest transaction volume in 7 months on September 1. The XRP transaction volume metric tracks the total number of tokens in all transactions completed daily. On September 1, this token number reached 4.8 billion XRP, the highest level since early February. Santiment data for the same period showed that 2.03 billion unique XRP tokens were traded. This increase could indicate several things. First, it may show that interest in XRP has rebounded after the price drop in the previous month. If the overall market sentiment improves and accumulation pressure increases, this could lead to a recovery in prices.
Expectations from XRP Whales
Similarly, XRP whales may have started accumulating in anticipation of a price rally when the summer stagnation ends. Data from Santiment revealed an increase in the daily number of whale transactions over $100,000 and $1 million last week. For the bullish scenario to become valid, the price needs to target the $0.63 region with closures above $0.51. If the decline continues, we may see the price drop to $0.42.
Conclusion
Despite the challenging start to September for the cryptocurrency market, there are signs of potential recovery. Increased transaction volumes and interest from whales could indicate a future price rally for Ripple’s XRP. However, the market remains volatile, and investors should monitor developments closely.
