The crypto market opened the week with a bearish turn, with the combined crypto market cap dropping as low as $1.18 trillion following a 1.98% slump over the past 24 hours. A number of altcoins have been impacted by these bear runs, and XRP is in their league. The XRP coin is changing hands at a price of $0.4857, down by 0.85% to crush its ambition for a steady rise to new highs.
While the losses accrued appear relatively mild for now, it has extended the weekly dip by 1.74%.
Divergent price actions are not uncommon with XRP, but amid this ongoing price slip, the cryptocurrency is flashing a bullish case for growth with its impressive trading volume. Overnight, the buying momentum of the digital currency has soared by 9.15% to $765 million.
The growth in trading volume is indicative of many things, including the fact that interest in XRP as a multipurpose utility asset remains intact. While the price of the asset is not reflecting this bullish sentiment because of the broader market trend, reversing its growth trend from this point onward will come easier should the buying tempo be sustained.
Fundamentals backing XRP growth
As a legacy digital currency, XRP has the right underlying technology to drive a positive disposition for the growth of the digital currency. It is designed to facilitate efficient payment transactions across the border, and it has done this very well through Ripple's proprietary technologies.
One key projection by market experts that can drive the growth of XRP is the conclusion of the Ripple v. SEC legal tussle. Should the much anticipated summary judgment be in favor of Ripple Labs and XRP, there is a high likelihood that the cryptocurrency might fuel a parabolic solo run, as it will drive people into XRP.
The new smart contract innovations being championed by XRP Ledger is also a positive trigger that may fuel the growth in the mid- to long term.
Gamza Khanzadaev
Vladislav Sopov