XRP Locks $2 Despite $2.46 Billion Volume: Why?

XRP, the fourth-largest cryptocurrency by market cap, is holding steady at around $2, despite a notable 25% drop in trading volume over the past 24 hours. According to CoinMarketCap data, XRP saw $2.46 billion in 24-hour volume, a significant figure, but down from recent highs.

The decline in volume indicates that trading activity might be slowing, with many traders waiting on the sidelines for the next big move. This is most likely related to current market uncertainty caused by macroeconomic concerns.

Related

In positive XRP news, HashKey Capital has launched the first investment fund in Asia designed to track the performance of XRP. The HashKey XRP Tracker Fund will be offered to professional investors and will provide exposure to XRP without requiring active asset management. Ripple will be an early backer of the fund. The investment strengthens its strategic partnership with HashKey, which currently offers Hong Kong-listed spot ETFs for Bitcoin (BTC) and Ethereum (ETH).

XRP’s short-term outlook

At press time, XRP was up 0.19% in the last 24 hours to $2.07, still hovering around $2 but up 3.84% weekly. XRP has steadily declined since reaching highs of $2.246 on April 13 and has marked four out of five days in losses since this date.

Despite the decline, XRP remains over $2, providing reassurance to holders. If buying pressure resumes and volume ramps up, a move above $2 is still possible. For the time being, all eyes are on XRP, as the daily RSI has flattened slightly below the 50 midpoint,, suggesting that consolidation or range trading may be in the cards in the short term.

In this scenario, XRP may swing between $2 and the 50-day SMA at $2.23 for a while. A break and close above the 50-day SMA could clear the path for a rally to $2.60. This is an important level for the bears to defend because a break above it would signal a short-term trend change, which would target $3. On the downside, a break and close below $2 could sink XRP to $1.61.