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XRP, the fifth-ranked cryptocurrency asset, is currently up by over 3% as its resilience manages to keep it from slipping below $2. The coin has battled volatility and broader market fluctuations as it seeks to reclaim the $3 level.
Can XRP overcome volume hurdle?
Despite its resilient efforts, the XRP price has dipped by 24.02% and 3.89% in the last 30 days and seven days, respectively. The coin has been able to stay out of the troubled zone due to sustained buying in the market. However, the volume count has not been significant enough to support upward price movement.
To record progress, XRP must overcome its low trading volume as October enters its final two weeks. As of this writing, XRP volume is deep in the red zone by 49.72% at $4.69 billion.
Despite the technical rebounds and Ripple’s $1 billion treasury plans, market participants remain cautious. This is because the optimism expressed by futures traders saw $1.98 billion in open interest wiped out.
As per the report, Ripple is leading an effort to raise a minimum of $1 billion through a special purpose acquisition company, SPAC. The goal is to use the funds to accumulate XRP as a digital asset treasury. The move could support the price as demand surges for XRP.
For now, XRP holders are reducing their speculative trades. Regardless, the price outlook holds promise for the asset. At press time, XRP changed hands at $2.38, which represents a 4.27% increase in the last 24 hours. The coin has gained over 10 cents as it climbed from a low of $2.24 to its current levels.
XRP price headed to $3
To witness significant price growth on XRP, ecosystem bulls need to fully activate and engage the asset. With volume down by almost 50%, institutional efforts alone might not ignite sustainable prices in the market.
If XRP’s rebound effort is sustained, it could act as a trigger that pulls investors back to trading the coin. Market participants need to see stability to throw off caution, particularly as geopolitical tensions continue to impact the crypto sector.
The next couple of days will reveal how XRP's price fares as it tries to reclaim the $3 level.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team