XRP Seemingly Staging a Remarkable Comeback According to This Indicator
XRPUSD +1.26% XRP, which ranks as the fifth largest cryptocurrency, appears to be in the midst of an impressive resurgence, based on a key metric highlighted in the latest analysis by the cryptocurrency research firm Kaiko.
Kaiko, in a recent tweet, points out that XRP’s liquidity has seen a substantial improvement following the court ruling in the Ripple-SEC case in July. They note that market depth increased from an average of $8 million in June to $12 million in early September, despite a decline in XRP’s price and trading volume.
$XRP liquidity has shown significant improvement since the July court ruling in the Ripple/SEC case. Market depth has risen from an average of $8 million in June to $12 million in early September, even as XRP’s price and volume have decreased.
After years of legal battles with the SEC, Ripple received a favorable ruling in July, confirming that the company did not violate federal securities laws when selling XRP on cryptocurrency exchanges.
The impact of this landmark ruling was profound: XRP briefly surpassed both BTC and ETH in trading volume, accounting for as much as 21% of the global cryptocurrency trade volume in the days following the decision.
The significance of liquidity in the cryptocurrency markets cannot be overstated, as noted by leading crypto expert Benjamin Cowen, who identifies it as a key factor influencing market dynamics.
Hence, if this trend of increasing liquidity continues, it could potentially have an impact on XRP’s price. At the time of writing, XRP had risen by 3% in the last 24 hours to reach $0.509.
XRP has been trading within a range in recent weeks, but it’s important to note that periods of consolidation like this are not permanent. XRP is expected to make a significant move in the near future, either upwards or downwards.
September has seen its fair share of ups and downs in the cryptocurrency sector. However, the overall narrative has been one of brief surges, a few isolated pushes in the cryptocurrency market, and limited movement by the end of the day.
In an intriguing development in the cryptocurrency market, the SEC faced a setback on Monday when a federal magistrate judge declined to immediately grant permission for its officials to investigate Binance.US’s software, marking a setback in the agency’s case against the cryptocurrency trading platform.