XRP price held steady above the $0.50 level on Tuesday. This move is key, as $0.50 is considered critical support for the altcoin in its recovery. In a recent turn of events, the New York State Department of Financial Services (NYDFS) dropped all cryptocurrencies except Bitcoin, Ethereum and stablecoins from its “greenlist.” This failed to increase selling pressure on XRP in the short term.
Ripple XRP was among one of the assets dropped from the list. While XRP holders and market participants expected a negative impact on the altcoin’s price, the asset continued its recovery and analysts set a target of $1.31 for the cryptocurrency.
Ripple’s XRP token removal from the NYDFS’s greenlist on Monday turned out to be a non-event for the altcoin. Market participants noted that except Bitcoin, Ethereum and a handful of stablecoins, no other cryptocurrencies feature on the list.
The move by the New York financial regulator comes at a time when the entity is shifting its stance on crypto assets and firms. Early on Monday, the regulator shared guidance asking virtual asset companies to increase transparency and raise their standards for token listing/ delisting.
XRP price held steady above $0.50, despite these moves by the regulator and analysts shared their bullish predictions for the asset.
Pseudonymous crypto analyst @Coins_Kid has set a $1.31 target for XRP over the next few months. The analyst’s bullish thesis stands if the altcoin’s price climbs above the August low. A drop below the $0.4227 level could invalidate the analyst’s prediction.
XRP/USDT one-week price chart
Popular crypto analyst behind the X handle @CryptoKaleo told his 596,400 followers that they are long XRP. Kaleo notes that XRP price (USD pair) found support after complete retracement to pre-July ruling levels, while the BTC pair is on the verge of an High Tight Flag (HTF) breakout.
XRP/BTC four-hour price chart
Kaleo’s thesis is that SEC’s track record in 2023 makes it likely that the interlocutory appeal gets denied and XRP price makes a complete recovery. At the time of writing, XRP price is $0.5099 on Binance, the altcoin yielded 1.39% gains on the day.
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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