XRP, the native crypto coin used by Ripple in its cross border payment quest, performed dismally in the first quarter of 2020 in comparison to other altcoins, per a report by Messari. According to the report, XRP closed the first quarter with a negative return of 10%. However, at the beginning of the second quarter things seems to be different in the crypto space at large.
Ripple has been working to increase the adoption rate of XRP, whereby it even raised capital to do so. Besides, Ripple has been reducing the rate of its market ‘dumping’, over the first quarter. Data from coinmarketcap at the time of writing showed the circulating supply stood at 44 billion.
On the other hand, the total number of coins held by Ripple stands at 6,412,053,853, while the total XRP placed in escrow tops 49,600,000,013. The number of those in escrow is substantially huge and some investors fear it’s the driving factor to the decreasing value of the coin.
However, a number of factors might be in action as the top crypto assets, BTC, ETH, and XRP, seem to be moving in a similar way. Every time Bitcoin rises, it rallies with almost all the altcoins in a similar percentage.
According to a rating on cryptocurrencies done by Fundamental Crypto Asset Score (FCAS), XRP currently scores an ‘A’, with 868 points. This is regarded as a health status for the coin. FCAS measures the user activity, it also checks on the developer’s behavior, and finally the asset maturity.
XRP FCAS rating figure has been rising for the past few years, in comparison to that of ETH which has been consolidating at 946 (health).
XRP Price Tandem
XRP is precariously hanging on to a point that will dictate the next move for the next few quarters. After rising to hit $0.20 during the past week, the price fell to the same level it began the year. The price is sitting on a support level that saw it rise to hit over $0.34 in the first quarter.
If the price fixes below $0.17 in the coming week, the value may dip to retest the previous low at $0.14. However, the scenario may be different if the price fixes above $0.20, where the bulls will take over to retest the yearly all-time high.
Ripple Behind the Scenes
Following the constant flooding of the coins into the market, Ripple has significantly reduced the number of coins released from the escrow. The company sold XRP worth $13 million at the end of 2019 Q4.
This reciprocated to an 80% drop from the previous quarter, where the company sold coins worth $66 million. With the ODL volumes rising in numbers, Ripple might be giving a chance for the market to develop.
However, it is a move that might positively affect the XRP market price in future.
