A filing with the Securities and Exchange Commission (SEC) suggests Ripple could release additional XRP from escrow if U.S. lawmakers pass the CLARITY Act.
XRP fell 5% to $1.44 as leverage hit a seven-month high, though the token remains up sharply for the week.
Ripple's XRP, the 5th most valuable cryptocurrency by market capitalization, has recorded one of the most notable price surges in the last 7-days.
XRP's 44% weekly rally has pushed leverage to a seven-month high. Here's why crowded long positions could increase the risk of a sharper XRP pullback.
XRP delivered one of its most impressive weekly performances in recent memory, surging 44% before entering a consolidation phase. The digital asset was changing hands near $1.44 on Wednesday following a brief spike above the $1.50 threshold earlier this week.
XRP spot exchange-traded funds (ETFs) have extended their streak of daily net inflows to nine consecutive trading days on Aug. 25. Investors added $23.87 million to the products despite a broader crypto market sell-off.
XRP fell to $1.44 as Binance leverage reached a seven-month high, leaving its 44% weekly rally exposed to leveraged liquidations.
Large XRP withdrawals jumped by 4.3x in two days!
XRPs sharp rally has drawn leveraged traders back into the derivatives market, increasing the risk of heightened volatility as the cryptocurrency begins to retreat from recent gains. XRP surged about 44% over the past week, outperforming many major cryptocurrencies.
Bitcoin slipped toward $79,000 during Asian trading on Wednesday as investors locked in profits following a powerful week-long rally that pushed the worlds largest cryptocurrency up about 23%. Bitcoin fell nearly 1% on the day, while several major altcoins recorded steeper losses.
XRP is down 2.2% over 24 hours after climbing 49.4% over seven days, putting the token back in negative territory after a strong week. The drop comes as crypto traders watch the payments business around XRP change, as large banks keep rolling out blockchain systems aimed directly at the pre-funding problem.
XRP's network activity exploded from 47,180 to 356,070 addresses.