Ripple (XRP) trades around $0.5600, erasing recent gains on Friday. XRP token holders have consistently realized gains on their holdings in the past week, increasing the selling pressure on the altcoin and prompting a correction.
On-chain data and whale activity shows a change in the supply distribution, larger cohort of whales are distributing their XRP, while smaller cohorts accumulate.
XRP address cohorts and supply distribution vs. price
Network Realized Profit/Loss vs. price
Ripple suffered a decline, XRP corrected to $0.54 low, early on Friday. The altcoin erased recent gains and is likely to extend losses by nearly 15% and sweep liquidity in the Fair Value Gap (FVG) between $0.5136 and $0.4780.
Once Ripple sweeps liquidity in this FVG, a return to $0.6058 is likely. This represents the 61.8% Fibonacci retracement of the decline from the March 12 top of $0.7696 and the July 5 low of $0.3823.
XRP/USDT daily chart
Ripple could find support at $0.5205, the 38.2% Fibonacci retracement of the decline from March 12 to July 5.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.