XRP Volume Skyrockets 24%, Has Price Bottomed Out?

XRP is witnessing growth in its trading activity amid renewed interest from market participants. In the last 24 hours, XRP trading volume has surged by a significant 24% as user engagement turned positive. This increased activity has also positively impacted XRP’s price.

Can XRP hold its gains?

Per the data, over $5.48 billion in XRP has been traded overnight. Typically, an increase in trading volume suggests heightened investor interest. Experts consider an increase in volume driven by accumulation, a bullish indication. However, when it is fueled by speculation, the price rally might not last.

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Interestingly, XRP, in the past seven days, has experienced intense volatility, with price and market volume fluctuating. Hence, this significant volume increase and a mild uptick in price likely suggest that the price has bottomed out.

Market watchers say XRP’s ability to sustain the current momentum or break the hurdles would confirm the asset’s future outlook.

XRP has found strong resistance at the $2.45 level in the last seven days. Previous attempts to breach this price mark have seen the token slip. However, with this corresponding spike in trading volume, investors anticipate this could lead to further gains.

Analysts maintain that if XRP suffers rejection and cannot stay above this crucial resistance level, then the chances of a drop below $2 cannot be ruled out in the midterm.

Market trends and XRP’s competitive edge

Given its recent performances, community members hope that XRP will sustain its current momentum. As reported by U.Today, XRP has outperformed BItcoin in terms of increasing wallets amid broader market volatility.

At the moment, Bitcoin now has more than 277,000 nonempty wallets, a significant drop from about three weeks ago.

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Meanwhile, XRP’s short-term moving average crossed the 50-day EMA a few days back. Analysts speculate this development might signal recovery if XRP stabilizes above $2.35.

With this trading volume increase supporting the price uptick, XRP might reclaim higher levels. As of this writing, XRP is changing hands at $2.44, up by 1.47% in the past 24 hours.