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XRP’s volume soars by 92%: Will a price rally follow?

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XRP witnessed a significant uptick in trading volume within the last 24 hours.

Ripple XRP

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  • XRP witnessed a massive surge in volume in the last 24 hours.
  • Price moved in a positive direction, however network growth continued to decline.

Over the last 24 hours, Ripple [XRP] witnessed a massive surge in volume. According to CoinMarketCap’s data, the volume at which XRP was trading at grew by 92.36% amounting to $4.8 billion.

A massive surge in volume

This surge in volume was accompanied by an uptick in XRP’s price. Since the 4th of April, the price of XRP grew by 9.2%. Despite the apparent positive price movement, a contrasting perspective emerges when considering the recent price trends of XRP.

Since the 11th of March, after testing the $0.7440 levels, the price of XRP declined significantly and exhibited multiple lower lows and lower highs, establishing a bearish trend. The recent surge in price wasn’t significant enough to reverse the declining price trend for XRP.

The CMF (Chaikin Money Flow) for XRP experienced a notable increase over the past few days, reaching the 0.17 level. This suggests that there has been a significant influx of buying pressure in the market for XRP recently.

However, the RSI (Relative Strength Index) fell to 54.13. This indicated that while the momentum might not be as strong as during overbought conditions, it still suggests some upward momentum can be expected from XRP.

If XRP manages to surpass the $0.6646 level, it could probably see a reversal in trend and may aim for the $0.7440 level going forward.

Source: Trading View

Looking at the specifics

However, there would be some challenges for XRP that it would need to overcome before it can rally again. AMBCrypto’s analysis of Santiment’s data revealed that the network growth for XRP had declined materially over the last few days.

This indicated that new addresses were losing interest in XRP.

If XRP fails to attract new addresses even at these discounted prices, it would have a tough time seeing green in the future.

However, the velocity around XRP had grown significantly in the last few days, implying that the frequency with which XRP was trading at had grown.

Another positive for XRP would be its declining MVRV ratio. A falling MVRV ratio suggests that most addresses holding XRP were not profitable.


Read Ripple (XRP) Price Prediction 2024-25


Even though on the surface low profitability may seem bad, it is actually a positive sign. These holders won’t make any profits if they sell their holdings, so they are incentivized to wait till XRP’s price sees green.

Thus, reducing the selling pressure on the XRP token.

Source: Santiment

 

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Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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