- The XRP price remained under resistance levels while sellers still maintained control.
- XRP Ledger has managed to reach $4.06B worth of tokenized assets and the number of holders rose significantly.
- The XRP open interest declined and there was reduced liquidation as leveraged positions were reduced.
XRP price kept falling on August 5 as the technical indicators were signalling weak momentum, despite the XRP Ledger hitting new heights in tokenized real-world assets (RWAs).
As of press time, XRP price was trading at $1.06 amid a 1.47% fall in the last 24 hours, while market cap fell by 3.16% to hit $66.29 billion.
XRP Price Remains Below Key Technical Levels
The XRP price was trading near $1.0599 on the four-hour timeframe, after extending its recent downward move. The cryptocurrency was still trading below the 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMA).
Among the above-mentioned moving averages, the 20-day EMA at $1.0703 was the nearest resistance level. The price was trading below the mentioned level, while the formation of the recent candles revealed bearish pressure.
Source: Trading View
On the technical oscillator front, the RSI was at the level of 39.84, which was still below the neutral level of 50.
The Bollinger Bands indicator was also bearish. XRP prices were trading at or near the lower Bollinger Bands at $1.0610, but remained under the middle Bollinger Bands at $1.0748.
The technical formation showed immediate focus on the $1.05 support zone with the middle Bollinger Bands as the first resistance level in case of a bounce.
Technical Analysis Key Points
- The XRP price was below the 20, 50, 100, and 200 EMAs.
- RSI had a reading of 39.84, still below the neutral point.
- Price was hovering near the lower Bollinger Band and the $1.05 support level.
XRP Ledger Records Higher Tokenized Asset Value
While XRP price weakened, the XRP Ledger continued to record growth across several tokenization metrics.
According to the latest figures from RWA.xyz, the represented value of tokenized real-world assets on the XRP Ledger increased to $4.06 billion, representing a 2.18% increase over the previous 30 days.
The number of RWA holders also expanded during the same period, rising 25.16% to 199 holders.
The latest increase followed Ripple’s previously announced strategic investments in infrastructure companies ZILO and Licuido, initiatives intended to strengthen institutional infrastructure built on the XRP Ledger.
Additional network data showed the XRP Ledger currently supports 373 tokenized real-world assets, while distributed asset value reached $368.82 million.
Stablecoin activity also remained a significant part of the network. The total stablecoin market capitalization climbed to $901.4 million.
However, monthly RWA transfer volume declined to $18.15 million, while stablecoin transfer volume decreased 1.79% to $3.89 billion.
XRP Ledger highlights
- The RWA value reached $4.06 billion.
- The network now hosts 373 tokenized assets.
- Stablecoin market capitalization rose to $901.4 million.
Derivatives Data Shows Reduced Market Leverage
Metrics for derivatives showed that there is a decline in speculative positioning within the market for XRP tokens.
From an open interest level higher than $10 billion, the current figure has dropped to $2 billion or $3 billion, due to reduced leverage in view of the prolonged price correction period.
This has happened amid a decline in participation in futures markets.
Data on perpetual liquidations have also pointed to the recent market structure, where several occasions have been noted for liquidations that have surpassed $20 million.
However, the recent instances of liquidations have been lower, meaning that there is reduced leverage in the market. Short liquidations have also emerged due to the XRP price moving in a tighter range.
Frequently Asked Questions
Why is XRP trading below the important resistance lines?
XRP is still below 20, 50, 100, and 200 EMAs. The RSI is also below 50, and XRP is trading below the middle Bollinger Band.
What is the latest value of tokenized assets on the XRP Ledger?
The value of real-world assets represented on the XRP Ledger has grown up to $4.06 billion based on the latest RWA.xyz data.
What is the latest derivatives data of XRP?
XRP open interest is down to roughly $2 billion to $3 billion from previous high values above $10 billion. XRP perpetual liquidations are now down from previous peaks in long liquidations.
