XRP
market
strength varies from one exchange to another. Ripple’s price is still showing the impact of the recent instability in the
crypto market
over the past 48 hours. As of now, XRP is trading at $0.48, a price that has provided some temporary stability in recent days. Market depth is an important factor to consider during times of increased volatility.
Contents
Cryptocurrency Exchanges and Volatility
What’s Happening on the XRP Front?
Cryptocurrency Exchanges and Volatility
This
data shows
how much buying or selling pressure is needed to move the price in a certain direction. It also depends on various factors that differ from one platform to another, such as the depth of the order book. Visit
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In general, exchanges with higher trading volumes and more liquidity have greater market depth. For example, on Binance, it takes about $1.44 million in sell orders to move XRP’s price down by only 2%. Conversely, it requires $1.2 million in buy orders to increase the price by 2%.
According to CoinMarketCap data, this process is valid for the XRP/USDT pair. For instance, on the US-based Coinbase, where the volume is much lower, only $850,000 can create a 2% negative movement. The market depth in major exchanges appears as follows according to the graph below:
What’s Happening on the XRP Front?
Recently, the XRP price has been unable to surpass $0.54, proving to be a significant barrier for the bulls. Since then, the price has been slowly moving towards the next major support level at $0.43. It is also important to note that bears have shown a downtrend on the monthly timeframe, indicating a significant change in the dynamics of price action.
The monthly close will happen in a few days, and it is crucial for buyers to step in if there is any chance of pushing the XRP price to $0.50 and above. The ongoing legal process between the SEC and Ripple Labs continues to create selling pressure on the XRP price.
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Disclaimer:
The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
