- XRP token reserve on Binance is down 167 million from August through the time of writing.
- Ripple CEO Brad Garlinghouse discussed blockchain technology potential with Japanese lawmaker Taira Masaaki on XRP community day, September 6.
- XRP dips to $0.5289, a slight decline in value on Monday.
Ripple (XRP) reserve on one of the largest crypto exchanges, Binance, declined by 167 million in a time frame of five weeks. This is a key development for XRP holders since a decline in the asset’s reserves on exchanges implies there are fewer XRP tokens to sell. Thus lower selling pressure on the altcoin should ensue.
XRP trades at $0.5289 at the time of writing.
Daily digest market movers: Ripple reserve on Binance dwindles
- Data from crypto intelligence tracker CryptoQuant shows that Binance’s reserves of XRPLedger’s native token dipped by 167 million over the past five weeks — between August 1 and the time of writing.
- Typically, a decline in an asset’s exchange reserves is considered positive since it reduces the available tokens for sale on a crypto exchange platform. This implies lower selling pressure and lower possibility of a negative impact on the asset’s price.
XRPLedger exchange reserve on CryptoQuant
- Ripple CEO Brad Garlinghouse recently met a Japanese lawmaker and spoke about blockchain technology and crypto in Japan on XRP community day, September 6.
- Garlinghouse says that through clear frameworks and constructive policy, Japan could foster innovation in blockchain.
Great to meet Rep @TAIRAMASAAKI in Tokyo this week — Japan’s leaders are committed to advancing crypto and blockchain technology, through clear frameworks and constructive policy that protects consumers and enables innovation. https://t.co/3WPJT05TuO
— Brad Garlinghouse (@bgarlinghouse) September 6, 2024
Technical analysis: XRP could extend losses to $0.50
Ripple is in a multi-month downward trend that started with the altcoin’s decline from the July 13 top of $0.9380. The altcoin could sweep liquidity at $0.5026 and extend losses by nearly 6.28%. XRP could slip to support and the September 6 low for the asset.
The Moving Average Convergence Divergence (MACD), a momentum indicator, shows red histogram bars under the neutral line. This implies there is underlying negative momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close at the upper boundary of the Fair Value Gap (FVG) at $0.5785 could invalidate the bearish thesis. XRP might target this level in a coming rally.
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