The digital asset market appears to be amid a continued correction this week. Yet, seemingly out of nowhere, Ripple (XRP) has seen its trading volume explore by $25 billion over the last two days. Could that development set the stage for an impending rally for the asset?
Over the last 24 hours, XRP has fallen more than 4% according to CoinMarketCap. Its current value of $0.611 has seen many investors concerned about its prospects in the short term. However, the massive surge in trading volume provides some optimism regarding where its price could go from here.
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Ripple (XRP) May Be Nearing Much-Needed Rally
For much of this year, the digital asset market has been performing positively compared to early 2023. In March, however, that performance took a massive step forward, with the first two weeks bringing massive gains. The way was led by Bitcoin, which reached an all-time high of $73,000 a little less than halfway into the month.
Yet, for the last week, a plethora of assets have faced a rather steep price correction. Among those has been Ripple (XRP) which could be facing a turnaround with a recent $25 billion increase in its trading volume over the last two days. Now, many investors are curious as to why the volume boost, and what it could mean for the asset.
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Potentially, the sudden increase in trading volume may be indicative of the recent price correction. When these downturn periods end, they often start with large market cap tokens experiencing more activity. But, could that indicate that a rally is nearing?
Although it is by no means a surefire statement of an impending rally, it denotes the possibility of such an event. Specifically, investors would benefit from observing the current $0.50 level support, a resistance area that is presented around $0.60, for a possible surge to take place.
The development could be helped by investor sentiment that may shift entering next week. As the Bitcoin Halving event gets closer, the market may pick up steam. Altogether, that could set the stage for an XRP rally to take place along the greater market.