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XRP, the seventh largest cryptocurrency by market capitalization, has seen an increase in trading activity over the past 24 hours, reflected in its trading volumes.
According to CoinMarketCap data, 2.03 billion XRP tokens, equivalent to above $1.07 billion, have changed hands, marking a 22.61% increase in trading volumes.
The increase in trading volume correlates with a slight rebound in the XRP price. The XRP price has turned green after three straight days of declines.
At the time of writing, XRP was up 0.34% in the last 24 hours to $0.529 but down 3.74% for the week.
Tomiwabold OlajideThe recent price decline, followed by an increase in trading volume, indicates that traders might be capitalizing on perceived buying opportunities, which might explain the reason behind the surge in trading volumes.
XRP's three-day price drop was met by buying at lows of $0.5117, which may have increased activity as traders reentered the market.
XRP price action
On Oct. 22, XRP dropped below the daily SMA 200 at $0.538, indicating that bears are attempting to gain control. The sell-off continued on Wednesday, with XRP reaching a low of $0.5117, where buyers reentered the market.
To sustain the XRP price comeback, bulls may need to push and hold the price above the 50-day SMA at $0.55 to signify strength. XRP could then attempt to rally to the overhead resistance level of $0.64.
On the other hand, if bulls fail to extend the present comeback, XRP could fall to the strong support level of $0.50. This is a critical mark for the bulls to defend because a break and closing below it would allow for a further drop to $0.46.
While the XRP price remains lackluster, XRP Ledger paints a contrasting narrative. At the start of the week, on-chain analytics firm Santiment noticed a surge in address activity and new wallet creation on XRP Ledger, mirroring levels last seen months ago.
XRP Ledger saw a huge increase in active wallets, with 35,799 unique wallets making at least one transfer in a single day, the largest number in over three months. Additionally, 3,858 new wallets were created in a single day, the biggest number in over seven months.
Arman Shirinyan
Alex Dovbnya
Dan Burgin