XRP prices are showing a muted reaction despite $1.3 billion in real-world assets being tokenized on its ledger. The macroeconomic factors took out the strong push and excitement behind the coin.
Ripple’s token, XRP, lost around 5% of its price with the prevailing bearish market condition within the past 24 hours. The prices crashed to the low $1.40s ($1.41) from the high $1.48. Despite losing value in the last 24 hours, XRP is still in the green zone when the weekly performance is considered.
As shown in the chart above, the token has gained around 3% during the past week despite falling from its weekly high above $1.65. The token showed a muted reaction despite $1.3 billion in RWA being tokenized on its ledger, as the market conditions were not favorable.
Despite the muted price action, XRP on exchange reserves has been diminishing. The XRP balance on exchanges dropped to 12.9 billion XRP on Tuesday, tallying with levels last seen in May 2021.
When the coin balance on an exchange reduces, it goes on to say that the traders are moving these into their wallets and have no intentions of selling the token anytime soon. And when more traders do this, it will drain the supply on exchanges, which is actually good for the prices.
Furthermore, data from CryptoQuant reveals that Binance’s XRP reserve has dropped sharply to around 2.57 billion XRP, as both the SMA(50) and SMA(100) are sloping downward. XRP analysts explain why price drop below $1 ‘remains possible’
“Technically, reserves are declining while prices remain near the lows,” said CryptoQuant contributor PelinayPA in a Monday QuickTake analysis. He further stated that the structure increases the probability of a potential short squeeze scenario ahead.
