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Why XRP's Rally Hit a Wall: New Report Names Key Reason

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Mon, 4/09/2023 - 18:20
Why XRP's Rally Hit a Wall: New Report Names Key Reason
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Despite a July rally that pushed its price to $0.8 following a favorable U.S. court ruling, XRP experienced a 25% price drop in August. This was largely due to heavy selling pressure on key offshore exchanges, according to a new report by Kaiko.

Volume soars, gains stall

XRP has shown considerable trading activity compared to other altcoins. According to Kaiko, XRP's average trade volume in the past month was $462 million, substantially outpacing some of its nearest competitors, SOL and BNB, which registered $128 million and $121 million respectively. However, the trading volume didn't translate into sustained price gains. 

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U.S. buyers buck the trend

Kaiko's analysis further reveals that buying pressure remained robust on U.S.-based exchange Coinbase. 

The average trade size for XRP on Coinbase exceeded that of all top ten altcoins last month. 

The spike in buying activity could indicate heightened interest from large traders stateside, particularly after the July court ruling allowed for the resumption of XRP trading. 

Yet, despite this upward pressure, XRP remains only the sixth most traded altcoin in the U.S. in terms of cumulative volume, even as it tops the list in offshore markets.

Appeal tension mounts

Adding to XRP's predicament, the Securities and Exchange Commission (SEC) has recently submitted a request for appeal regarding the token's status.

As reported by U.Today, Ripple is opposing the SEC's request to appeal a judge's ruling that XRP is not a security. In the meantime, the SEC seeks to pause its ongoing lawsuit against Ripple during the appeal process.

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