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XRP has witnessed intense volatility in the last 24 hours. The price crashed from a peak of $2.26 to a low of $2.09 as it tested the $2 support level. Despite flashing this bearish signal, XRP investors have remained active on the market, pushing trading volume above 52%.
XRP investor activity heats up amid price dip
According to CoinMarketCap data, XRP volume has spiked by 54.29% to $4.39 billion as of press time. This massive increase in volume while price continues to decline suggests heightened market activity that could positively impact XRP.
Higher trading volume could improve liquidity and make it easier for market participants to trade XRP without significantly affecting the price. If this happens, it might attract more investors and ultimately stabilize prices.
The volume surge might also lead to a recovery if more buyers than sellers are in the market. This could create buying pressure, as investors could leverage the price dip to accumulate more coins.
Such a scenario could spark a comeback for XRP, which has shown remarkable resilience in the past couple of weeks. On the flip side, if selling pressure dominates, it could trigger more volatility for XRP.
As of press time, XRP has climbed from a low of $2.09 to $2.12. This represents a 4.86% decline from the previous level attained in earlier trading sessions.
Massive Binance outflow signals bullish sentiment
As U.Today reported, XRP price volatility triggered massive liquidation for long position traders as they saw $7.63 million wiped out as the asset dropped in value. The current volume surge signals that investors are still anticipating a huge comeback for XRP.
Another indicator of bullish confidence in the XRP space is the recent withdrawal of XRP valued at $150 million from the Binance exchange. The outflow suggests XRP holders are not hurrying to sell their coins despite price fluctuations.
Vladislav Sopov
U.Today Editorial Team