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XRP's real trading volume surged to a whopping $25 billion in the last 48 hours. But the reasoning behind it is not clear. Let's try to break it all down.
From the real volume chart, it is clear that there has been a steady rise in trading, but recently, things really took off. A jump this big makes you think, why now? One reason could be that the market is getting out of correction mode, and when that happens, large caps like XRP often see a lot of action.
XRP's price has been bouncing up and down, but there was a moment when it shot up higher than it had in a while. This is what traders call a "higher high." It means that, for a moment, people were willing to pay more for XRP than they have in recent times.
The key levels to watch now are the support around $0.50, where the price has bounced back before, and the resistance near $0.60, which is like a ceiling that the price has to break through to keep climbing.
Now, for a bit of guesswork as to why this might be happening. It could be that investors are getting more confident about the future and starting to buy more XRP, despite the fact that the asset remains suppressed.
If this trend keeps up, we could see XRP's price climb higher, especially if it breaks past that resistance level. But as always with cryptocurrencies, it is a wait-and-see game. There is always a chance that prices could swing the other way, so it is important to keep an eye on the market.
A sudden surge in XRP's volume could mean a lot of things, but one thing's for sure: XRP might be finally getting ready for a proper reversal. However, growth of underlying metric does not necessarily means growth of an asset's price.
Alex Dovbnya
