Ripple makes steady gains as XRP on-chain metrics turn bullish

• XRP supply on exchanges is on a steady decline, signaling a decline in selling pressure per Santiment data. 
• Ripple started testing its stablecoin in private beta, while traders digest SEC lawsuit ruling. 
• XRP whales drop their tokens, while retail traders accumulate since last week’s crypto crash.
• XRP extends gains to $0.57 and eyes 10% rally to $0.63 in a bullish scenario. 

Ripple (XRP) shared positive developments with traders in the past week, following the end of the Securities & Exchange Commission (SEC) lawsuit against the firm. XRP erased its losses and held steady above key support at $0.57 on Tuesday. 

On-chain metrics show bullish potential in the native token of the XRP Ledger amid other positive developments in the ecosystem. 

Daily digest market movers: XRP on-chain metrics support bullish thesis

• Santiment data shows that XRP supply on exchanges is on a steady decline. As XRP tokens held on exchange wallets reduce, there is less availability of the token to sell, reducing the selling pressure on the asset. 
• Dwindling exchange supply is, therefore, considered a sign of potential gains in the altcoin price. 

XRP supply on exchanges vs. price

• XRP large wallet investors have shed their token holdings, while retail holders accumulate the asset, even as Ripple extends gains. Santiment data shows XRP supply distribution in the last week. 

XRP supply distribution vs. price

• Ripple started its private beta testing for stablecoin RippleUSD (RUSD). The firm informed traders that the token is not available for trading or sale since regulatory approval awaits. 

Technical analysis: XRP eyes 20% gains

Ripple is in a multi-month downward trend as seen in the XRP/USDT daily chart. XRP extends gains on Tuesday, up to $0.5744 at the time of writing. XRP could extend gains by 10.21% and rally toward the $0.63 target. 

The $0.63 level is key to XRP, and the altcoin faces resistance at the psychologically important $0.60 level. The Relative Strength Index (RSI) reads 52, signaling positive momentum in XRP price trend. 

XRP/USDT daily chart 

XRP could find support in the Fair Value Gap (FVG) between $0.5888 and $0.5785 in a bearish scenario.