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XRP market depth on Gemini holds steady despite falling demand

2min Read

Following a brief dip in XRP’s 1% market depth on Gemini when the alt’s price unexpectedly surged to $50, it has rebounded and stabilized.

XRP market depth on Gemini holds steady despite falling demand

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  • XRP’s 1% market depth on Gemini has rebounded.
  • As price craters, demand for the altcoin has dropped

The amount of Ripple [XRP] available for buying and selling on cryptocurrency exchange Gemini, within the 1% price range, has risen and is now stable at around 150,000 XRP, research firm Kaiko has found. 

The 1% market depth on the exchange suffered a brief decline on 10 August. This was after the altcoin’s price rocketed to $50, trading at a disparity with the spot markets on other exchanges.


Read XRP’s Price Prediction 2023-24


An asset’s market depth refers to the supply and demand of that asset at different price levels on a trading platform. The sudden jump in XRP’s value on Gemini was likely due to the low liquidity on the exchange following its relisting.

Gemini relisted the token after a federal judge ruled in July that the offer and sale of XRP on digital asset exchanges did not meet the definition of an investment contract.

During this period, a buyer “fat-fingered a market order,” which was filled by an unsuspecting buyer, causing the price uptick.

This caused market makers on the exchange to momentarily stay their hands from trading until Gemini sorted the issue. 

Currently trading at $0.611213 on the exchange, Kaiko confirmed the availability of about 150,000 XRP for buying and selling within the 1% price range. This indicates that the supply and demand for XRP within this specific price range have become more balanced and stable on the cryptocurrency exchange.

Slow down, XRP degen

After the ruling was made on 13 July, XRP’s price rose. It became increasingly profitable as the MVRV ratio jumped to a high of 121% by 19 July. 

According to Santiment, this metric measures the ratio between the current price and the average price of every coin/token acquired. The more the ratio increases, the more people will be willing to sell as the potential profits increase.


Realistic or not, here’s XRP’s market cap in BTC’s terms


However, as the alt’s price began its descent, the MVRV ratio steeply declined as well. As of this writing, it stood at 62.34%. While still overvalued, the drop in the MVRV ratio showed that the number of XRP transactions that would return profit dropped slowly in the last month.

Source: Santiment

On the daily chart, the token’s accumulation has plummeted. At press time, XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested at 39.50 and 38.61, respectively. Positioned below their respective center lines, selling pressure outweighed accumulation among daily traders.

Source: XRP/USDT on Trading View

 

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
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