XRP Market Liquidity Hits 3B as Bulls Target $0.70 Breakout
thecryptobasic.com 31 July 2024 16:24, UTC XRP price finally breached the $0.65 territory on July 31, reflecting a 70% growth performance in the last 20 days of trading; on-chain data shows how bulls have capitalized on improved market liquidity amid Trump’s recent bullish statements.
XRP Price Crosses $0.65 First Time in 3-Months
XRP continued on its upward trajectory with a blistering 8% rally on Wednesday, July 2024. Based on recent events and market narratives, the XRP price surge remains closely linked to Donald Trump’s comments at the Bitcoin Nashville conference at the weekend.
Since 2020, Ripple Labs has been embroiled in long-running legal squabbles with the current Gary Gensler-led SEC regime. However, with Joe Biden bowing out of the re-election race, Trump’s bullish stance on crypto has lifted investor sentiment around distressed assets like XRP, which have historically devalued due to perceived regulatory risk and legal sanctions.
The yellow-shaded area in the chart above shows how the XRP price gained 10.5% within the 24-hour timeframe on July 31. But zooming out, this means XRP price has increase by a whopping 72% in the last 20 trading days, dating back July 5 2024.
Notably, this marks the first time the XRP price has traded above $0.65 in 3-months, dating back to March 25. However, on-chain data trends suggest that XRP could be poised for even more gains in the days ahead.
XRP Deposits to Binance Crosses $2B Amid 72% Rally
Hence, this paints a bullish picture closely correlated to recent developments in the US 2024 Presidential campaign trail. With Donald Trump’s support for Bitcoin echoing across the altcoin markets, on-chain data shows that XRP traders have responded by bringing unusual levels of liquidity to the markets.
The cryptoQuant chart below tracks the total number of coins investors currently hold on trading platforms and exchange-hosted wallets. This provides insights into the level of short-term market liquidity available to execute trades.
Looking at the chart above, we see that XRP’s current price rally was preceded by an unusual spike in exchange deposits. Traders held a total of 2.68 billion XRP coins on the world’s largest crypto exchange, Binance, as of July 1.
The latest, culled from CryptoQuant, shows traders held deposits on Binance crossed 3.069 billion XRP on July 29. Zooming out, this represents a 75 million (4% )increase in short-term market supply within the last 30-days.
Evidently, due to the increased demand triggered by Trump’s recent bullish statements, this boost in liquidity has contributed to accelerating the ongoing 72% price rally.
More so, it also suggests that a large number of retail traders registered on Binance and are showing interest in XRP again as the perception of regulatory risk wanes.
If this market dynamic persists, XRP could now advance towards $0.70 territory as August 2024 unfolds.
