The price of XRP continues to trade narrowly between $0.62 and $0.61 this week. This consolidation stands in contrast to major gains seen by other top 20-ranked digital assets like Cardano (ADA) and Solana (SOL) over the same period.
According to recent on-chain analysis, decreasing trading volume for XRP seems to be a key factor holding back its price trajectory as the broader altcoin market rallies.
Data from the crypto trading platform Coinglass shows that daily trading volume for XRP has declined sharply over the past week, even as its price trended downward. After hitting a peak of $0.69 last week, XRP has since dropped to around $0.61 at press time.
High trading volumes tend to signal strong market demand and high levels of economic activity around a coin. When trading activity declines at the same time broader market prices are rising, it often indicates waning investor interest and profit-seeking speculation in an asset compared to its competitors.
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Will XRP drop below $0.60?
With major altcoins like Avalanche, Cardano, and Solana posting historic double-digit price spikes this past week, XRP’s simultaneous loss of trading volume points to investors shifting attention to those rising stars over the languishing Ripple token for their short-term bets. This dynamic weighs on XRP’s price outlook.
Without a significant infusion of bullish news or market triggers, XRP seems poised to fall below $0.60 in the coming days as negative momentum continues to sap its trading activity.
To flip momentum and turn bullish again, XRP would need to break back above resistance at $0.67, where it peaked last week. Otherwise, failure by current holders to buy the dip could see prices cascade below $0.60. The next support level sits around $0.59.
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In summary, Ripple’s XRP token has diverged from broader altcoin market gains this past week as investors dump the formerly mainstream asset. However, the 24-hour trading volume has surged by 22.3% and now stands at $1,371,489,998.