- XRP’s 1% market depth on Gemini has rebounded.
- As price craters, 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 has found.
📈👀Last week, #XRP‘s 1% market depth on Gemini saw a brief dip as market makers pulled back post a rapid $50 price spike.
👉Good news: depth has rebounded, steadying at around XRP 150k. pic.twitter.com/ORu9BmsJCc
— Kaiko (@KaikoData) August 15, 2023
The 1% market depth on the exchange suffered a brief decline on 10 August. This was after the altcoin’s price rocketed to $50, trading at a disparity with the spot markets on other exchanges.
Read XRP’s Price Prediction 2023-24
An asset’s market depth refers to the supply and demand of that asset at different price levels on a trading platform. The sudden jump in XRP’s value on Gemini was likely due to the low liquidity on the exchange following its relisting.
Gemini relisted the token after a federal judge ruled in July that the offer and sale of 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 “fat-fingered a market order,” which was filled by an unsuspecting buyer, causing the price uptick.
the order book is very thin, i have been watching all day, at one point there was nothing for sale, someone put a lot to sell at $50.00 and someone must have fat 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
This caused market makers on the exchange to momentarily stay their hands from trading until Gemini sorted the issue.
Currently trading at $0.611213 on the exchange, Kaiko confirmed the availability of about 150,000 XRP for buying and selling within the 1% price range. This indicates that the supply and demand for XRP within this specific price range have become more balanced and stable on the cryptocurrency exchange.
Slow down, XRP degen
After the ruling was made on 13 July, XRP’s price rose. It became increasingly profitable as the MVRV ratio jumped to a high of 121% by 19 July.
According to Santiment, this metric measures the ratio between the current price and the average price of every coin/token acquired. The more the ratio increases, the more people will be willing to sell as the potential profits increase.
Realistic or not, here’s XRP’s market cap in BTC’s terms
However, as the alt’s price began its descent, the MVRV ratio steeply declined as well. As of this writing, it stood at 62.34%. While still overvalued, the drop in the MVRV ratio showed that the number of XRP transactions that would return profit dropped slowly in the last month.
Source: Santiment
On the daily chart, the token’s accumulation has plummeted. At press time, XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested at 39.50 and 38.61, respectively. Positioned below their respective center lines, selling pressure outweighed accumulation among daily traders.
Source: XRP/USDT on Trading View
