As an experienced analyst, I believe that the market depth is an essential metric to consider during periods of volatility in the crypto market, including Ripple (XRP). The market depth indicates buying or selling pressure required to move the price in a certain direction and by how much. It’s based on factors such as trading volume and liquidity.
The crypto market’s instability over the previous 48 hours was reflected in the fluctuating value of Ripple‘s price.
As a crypto investor, I’d express it this way: Currently, XRP is holding steady at $0.48 during my observation, with no significant fluctuations taking place in recent days, creating a brief stalemate in its price movement.
Is the XRP Market Fragile?
One thing to observe during times of increased volatility is the market depth.
This measurement signifies the amount of demand or supply required to shift the price in a particular direction and by what extent. Its calculation considers various elements, including the order book’s depth, which may differ among trading platforms.
In simpler terms, the markets with larger trading volumes and greater liquidity tend to have deeper market depths.
On Binance, it takes around $1.44 million in sell orders to decrease the XRP price by only 2%, while it requires approximately $1.2 million to cause a 2% price increase for the XRP/USDT pair, based on CoinMarketCap data.
At Coinbase, for example, a comparatively smaller trading volume of $850,000 could lead to a 2% price decrease.
This is how the market depth looks on the major exchanges:
XRP Price Outlook
According to CryptoPotato’s previous report, the XRP price failed to surpass $0.54, making it a significant hurdle for the bulls attempting to drive up the price.
Since then, the price has been slowly trending toward the next important support level at $0.43.
An intriguing observation is that the bears have successfully formed a bearish crossover on the monthly chart, signaling a notable shift in the price trend’s direction.
With the monthly closing date approaching, it’s crucial for potential buyers to consider making their moves if they wish to help drive XRP‘s price above $0.50 and further upwards.
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2024-06-25 15:36