- XRP has not been seeing a lot of demand recently, and this might cause more of its supply to fall below the profit zone.
- XRP’s support is strained due to poor price trends.
- Over 1 billion XRP holders are now out of profit.
XRP struggles to maintain its price amidst declining demand and profitability. Discover the key factors influencing its current market position.
XRP’s Support Strained by Poor Price Trends
XRP has faced difficulties in recent days, yet it has successfully stayed above a crucial threshold. How is the total supply faring in terms of profit, and what factors could help maintain its current price range?
XRP Rests Heavily on Support
At the end of the past week, XRP’s price managed to rise above its short Moving Average (yellow line) with an increase of over 1%, bringing its value to around $0.54. This move indicated positive momentum. However, a 2.46% decline at the start of this week erased those gains, bringing the price down to around $0.52. At press time, its price was trading at about $0.52, with the yellow line now acting as immediate support.
The long Moving Average (blue line) remained a resistance level at approximately $0.58. Also, the Relative Strength Index (RSI) indicated that XRP was experiencing a weak bullish trend. The RSI was currently on the neutral line and could fall below it if there was a significant price decline.
XRP Demand Stays Flat
AMBCrypto’s analysis of the total number of XRP holders revealed that demand has been relatively flat in recent days, with around 5.2 million holders at the time of writing. This number has remained unchanged for the past three days, indicating no rush to accumulate the asset despite the price trends.
The trading volume has shown no significant activity recently, with the volume at approximately $793 million. Given this low level of activity, the current support might struggle to hold, potentially leading to a price drop soon.
Supply in Profit Declines
AMBCrypto’s look at the total supply of XRP revealed that the volume of that supply in profit has decreased due to the recent price decline. According to a study of the chart on Santiment, approximately 1 billion XRP transitioned from a profitable position to a loss between the 25th of May to press time.
On the 25th of May, the volume in profit stood at over 80 billion XRP, but at the time of writing, it had decreased to around 79 billion. This shift resulted in a decrease in the percentage of supply in profit from over 80% to approximately 79% at the time of writing.
Conclusion
XRP’s current market position is precarious, with declining demand and profitability putting significant strain on its support levels. The asset’s future will depend on its ability to maintain current price thresholds and potentially attract new investors. As the market evolves, stakeholders should closely monitor these key indicators to make informed decisions.
