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XRP has seen its volume drop by 66% in the last 24 hours, sparking concerns in the market. According to CoinMarketCap data, XRP's trading volume came to $2 billion, a 66% drop over the last 24 hours.
While this might be concerning, it may not be far from the norm, given often less trading volume during the weekends.
Despite the drop in volume, XRP saw significant whale activity in the week just ended. Given that whales are still participating in the market, the drop in volume may not be so much cause for concern.
On Sept. 5, Whale Alert reported a move of 49,999,989 XRP worth $140,841,434 shifted between unknown wallets. A total of 250,000,000 XRP worth $703,901,147 was also transferred from Ripple to an unknown wallet. On Sept. 3, 50,000,010 XRP worth $140,699,855 was transferred from unknown wallet to an unknown new wallet.
Price warning?
The drop in volume might also be traders waiting on the sidelines to gain clarity in the new week before taking their positions, and might not necessarily be a price warning.
XRP's price is trading higher, up 3.03% in the last 24 hours to $2.89 despite the volume drop. XRP saw a significant surge to $2.92 in early Sunday session, extending its recovery from Sept. 1 low of $2.69.
A break and close above the daily SMA 50 at $3.04 might clear the path for a rise to $3.40 and then $3.66. On the other hand, a drop below $2.69 could cause XRP to drop toward $2.20.
In recent news, Bitwise has listed five new crypto ETPs on Six Swiss Exchange, including Bitwise Physical XRP ETP (GXRP) which allows investors to gain exposure to XRP in the same way that an ETF does.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team