XRP Price On-Chain Momentum: CoinShares Report Sheds Light on Investor Sentiment
In the first week of September, Ripple (XRP) saw a high volume of trade on major US exchanges, expecting a price trend reversal. Backing this on-chain has also speculated that this heightened trade may boost XRP’s spot values in the coming weeks. XRP jumped in July $0.8 due to a favorable court ruling, but it dropped by 25% in August now it is at $0.52 because many people were selling it on offshore exchanges. Even XRP’s Open Interest was also down, which is now 8% higher.
‘XRP Price to Rise’ on-Chain, Good Time to Buy?
Surprisingly, On-Chain data reveals, that more XRP adoption has started in the US, especially on Coinbase, a popular exchange, in August 2023. XRP has been traded a lot compared to other cryptocurrencies. In the past month, the average trade volume for XRP was $462 million, which is much higher than similar cryptocurrencies like SOL and BNB, with $128 million and $121 million, respectively. However, this increased trading hasn’t led to higher prices.
However, data from Kaiko suggest that Binance did the maximum selling while buying increased on Coinbase. XRP has surpassed the top 10 crypto assets in terms of buying in US exchanges. This change in buying behavior happened after a significant court ruling in July 2023, which said that XRP sales to regular buyers were not securities. The community’s backing and John Deaton’s claim that XRP is the next Bitcoin are the reasons.
From Surging Inflows to Sudden Standstill
CoinShares has reported a sudden stop in inflows into XRP-focused investment products, following a streak of $2.7 million inflows over the past four weeks. Despite this halt, XRP remains the hot choice among crypto-oriented investment products, with cumulative inflows exceeding $13 million. Among traditional investors, only Bitcoin, Short Bitcoin, and Solana have surpassed XRP in popularity.
What’s Coming Next?
In the latest update, Ripple has opposed the SEC’s attempt to appeal a court decision in a filing with the United States District Court for the Southern District of New York. Ripple’s lawyers say that the SEC is questioning how the court applied the Howey test, a legal test used to determine if something is a security. Regardless of the appeal’s outcome, both Ripple and the SEC are ready to go to trial in the second quarter of 2024, as long as the current court decision remains in place.
All eyes are on Ripple’s Proper Party event in NYC on September 29th, where Ripple may announce an SEC settlement or IPO to restore investor faith. Increased mainstream adoptions will help the firm in either case. In the meanwhile, adding to XRP’s challenges, the SEC has asked to pause its lawsuit against Ripple while they appeal the court’s decision about XRP’s status. Ripple disagrees with this request.