Ripple released its second quarter markets report Thursday, revealing it increased XRP sales by around 50%.
The sales were attributed to a spike in demand for its On-Demand Liquidity service.
XRP now appears bound for a brief correction before advancing further.
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While many crypto giants collapsed in the second quarter, including Terra, Three Arrows Capital, Celsius, and BlockFi, Ripple has affirmed that it made significant strides to increase the utility of the XRP ledger and its On-Demand Liquidity service.
Ripple Increases XRP Sales
Ripple released its second quarter markets report Thursday, revealing a substantial increase in XRP sales and the utility of its On-Demand Liquidity (ODL) service.
The U.S.-based firm affirmed that its second quarter was a success. According to the report, the volume of its ODL recorded 800% year-to-year growth thanks to multiple partnerships that helped accelerate demand. One of the firm’s most significant partnerships was with the Lithuanian money transfer provider FINCI, which aimed at delivering instant and cost-effective retail remittances.
With the global expansion of ODL, Ripple also increased XRP sales by around 50%. The firm sold around $408.9 million worth of XRP in the second quarter, adding to the $273.27 million it cut from its holdings in the previous quarter. Meanwhile, the company reported that volumes declined by 22% quarter-to-quarter to an average daily volume of $862 million, down from $1.1 billion.
In the report, Ripple noted that XRP’s second quarter price performance was affected by “broader macroeconomic cues and idiosyncratic developments.” Still, the token has managed to slice through a crucial resistance area in the past 48 hours. Further increase in bullish momentum could help XRP advance higher.
XRP to Retrace Before Higher Highs
From a technical perspective, XRP appears to have broken out of a parallel channel on its 12-hour chart. The Tom DeMark (TD) Sequential indicator is currently presenting a sell signal in the form of a red nine candlestick. The bearish formation anticipates a brief retracement to $0.37, at which point XRP could collect liquidity before making another bullish impulse toward $0.45.
XRP/USD 12-hour chart (Source: TradingView)
Given the spike in Ripple’s XRP sales, the $0.37 support level is crucial in case of a downswing. If XRP fails to hold above this critical demand zone, it could suffer a sell-off and plummet to $0.34.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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