XRP simmers down, but how long before the next rally?
Ripple cools off – for now
Wu Blockchain’s recent post revealed a significant drop of more than 13% in XRP’s value within 24 hours. The decline comes after a surge in price that followed the release of the summary judgment.
The judgment initially ignited an altcoin rally, but the momentum seems to be subsiding.
Ripple’s price trend and short-term MVRV
Analyzing XRP’s daily timeframe revealed a remarkable rally of more than 73% on 13 July, propelling its price range to levels not seen since around February 2022. This surge pushed XRP into the overbought zone with great intensity.
Correction before a potential bounce
The price analysis of Ripple, coupled with MVRV data, suggested that a price correction was likely on the horizon. The observed spike in price was characteristic of a
“sell the news” phenomenon, where prices tend to decrease once the initial hype subsides.
Additionally, based on the press time trend, long positions appeared to face a higher risk of liquidation than short positions.
Coinglass revealed that on 14 July, long positions experienced liquidations totaling over $14.7 million, while short positions faced liquidations of over $9 million.
