Ripple (XRP) has plummeted by over 46% from its $0.9380 yearly high in July. A new report from Kaiko shed light on the factors contributing to this significant downturn. Despite a July rally that catapulted XRP to $0.8 following a favorable U.S. court ruling, the digital asset experienced a 25% price drop in August. Heavy selling pressure on offshore exchanges is the primary culprit.
According to Kaiko’s data, XRP boasted an impressive average trade volume of $462 million in the past month. This substantially eclipsed its closest competitors, Solana (SOL) and BNB, which logged in at $128 million and $121 million respectively.
However, this brisk trading activity failed to translate into a sustained uptick in price. Interestingly, the buying pressure remained robust, particularly on U.S.-based exchanges like Coinbase. The average trade size for XRP on Coinbase outstripped all other top ten altcoins last month.
Large traders in the United States seem increasingly interested in XRP, especially following a July court ruling. This verdict allowed XRP trading to resume in the U.S., with the judge ruling that Ripple is not a security. Despite this boost, XRP still ranks only as the sixth most traded altcoin by cumulative volume in the U.S. Meanwhile, it dominates in offshore markets.
Adding to XRP’s woes, the Securities and Exchange Commission (SEC) recently threw a curveball. They submitted a request for an appeal concerning the token’s status. Currently, Ripple has opposed the SEC’s appeal attempt. The firm aims to sustain the previous court ruling that XRP is not a security. Meanwhile, the SEC hopes to pause its ongoing lawsuit against Ripple during this appeal process.
Recent data shows XRP in a bullish trend, with a minute price increase of $0.5036 in the last 24 hours. Currently XRP hovers at $0.003944, perilously close to its support level of $0.499. Resistance is set at $0.5098.
