- The $5 billion gap between XRP and USDC could make it difficult for the token to move back up to sixth place.
- Despite outflows from exchanges far exceeding inflows, prices could see another deficit.
Data from Santiment shows XRP’s trading volume halved in two days. On April 14, XRP’s trading volume was $4.87 billion. But as of this writing, that figure has plummeted to $2.43 billion.
Trading volume is an indicator of interest in the market. Increasing means there is a lot of exchange happening. However, the significant decrease in token volume means that interest in the token has dropped tremendously.
Not only did that happen, but the price movement went in the same direction. At the time of this writing, the price of XRP was $0.49. Two days ago, the same token was trading around $0.54, and the recent decline suggests massive selling pressure.
Source: Santiment
Is the rescue team coming?
However, if market conditions remain weak, XRP may see further declines. Declining volume and price action were generally seen as weakening a downtrend.
However, if the price of Bitcoin (BTC) continues to fall, altcoins like XRP may find it difficult to rebound. Meanwhile, other areas other than the price of the Ripple token also fell, but what was noteworthy was the market capitalization.
Just a few months ago, XRP was the fifth most valuable cryptocurrency on the market. However, this is no longer the case, as the project was ranked 7th at the time of going to press.
Market capitalization is a product of price and circulating supply. So we will admit that disappointing price action was the cause of the decline.
AMBCrypto checked the difference between the market capitalization of XRP and USDC and found a huge difference of $5 billion. These differences may make it difficult for the token to regain the sixth spot.
Others eye XRP’s place
For short-term price predictions, we looked at exchange flows. According to on-chain data, XRP outflow from exchanges was 1.49 million. On the other hand, exchange inflow was 688,000.
The huge difference between inflows and outflows appears to have a huge impact on the value of the token. This is because high outflows meant that there were fewer participants willing to sell their tokens.
Source: Santiment
As a result, XRP may stabilize or trade sideways. However, there is little chance of it falling below $0.45. Instead, the token price may move between $0.49 and $0.52 in the short term.
Meanwhile, cryptocurrencies may be a bit depressing in the long term. Besides its unimpressive price performance, XRP may be threatened by other coins such as Dogecoin (DOGE) and Toncoin (TON).
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When comparing performance, we observed that DOGE and TON exhibit better momentum than XRP. So these two people can flip their tokens. If this happens, XRP could have Cardano (ADA) competing for the top 10 spot by market capitalization.