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XRP Records 1,500% Volume Spike, What's Going On?

Thu, 11/03/2022 - 11:55
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Tomiwabold Olajide
XRP volume may have been caused by investors wanting to buy XRP
XRP Records 1,500% Volume Spike, What's Going On?
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XRP trading volume suddenly rose by more than 1,500%, per CoinMarketCap data. However, the price of XRP did not make any major moves, leading to speculation. At the time of publication, XRP was changing hands at $0.457, marginally up in the last 24 hours.

XRP, Courtesy: CoinMarketCap

Increased volatility generally leads to higher trading volumes in any market as seasoned traders buy and sell large quantities to capture profits. This is not the case, as XRP has been consolidating in a range since Oct. 20.

Likewise, the rise in XRP volume may have been caused by investors wanting to buy XRP at its current range in anticipation of a major move in price.

XRP Forms Its First "Golden Cross" in Months: Details

As reported by U.Today, the XRP price chart produced its first "golden cross" in 15 months on Oct. 23, which is regarded as a bull market indicator by analysts. Its last occurrence was on July 17, 2021, which was followed up by a 176% price rally later.

However, it should be noted that sometimes a crossover occurs when the asset is already overbought and due for a correction, trapping buyers on the wrong side of the market.

Likewise, the total number of units traded between buyers and sellers, or trading volume, is, however, said by some observers to be an unreliable measure of investor positioning.

More interesting is the disparity in the XRP 24-hour trading volume quoted by both market data aggregators, CoinMarketCap and CoinGecko. CoinMarketCap gives the 24-hour trading volume of XRP as $19,750,281,700, while CoinGecko quotes the same as $1,528,666,065.

XRP Sets All-time High in Number of Addresses with Balances Over 1 Million

Whatever the case might be, optimism remains unchanged as the number of addresses with over 1 million XRP recently hit a new high.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.