XRP Witnesses 68% Volume Spike as XRP Price Takes Bear Side

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Mon, 02/12/2024 - 11:30
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Recent data from CoinGlass indicates a notable uptick in XRP derivatives trading, with a significant 68.2% increase observed over the past 24 hours, totaling $867.89 million. This surge in trading activity is complemented by CoinMarketCap's data of a 24-hour spot market volume for XRP reaching $837.35 million. 

As a result, the combined trading volume for XRP has exceeded the billion-dollar mark, reflecting a resurgence of interest in this particular digital asset.

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However, despite the apparent surge in trading volume, XRP's price trajectory tells a more nuanced story. Over the past four hours, amid heightened trading activity, XRP has found itself among the top liquidated assets on the crypto market. 

Approximately $190,000 worth of XRP positions were liquidated during this period, with an overwhelming 99.4% of these liquidations representing long positions.

XRP to USD by CoinMarketCap

The primary factor influencing this imbalance is the recent decline in XRP's price. After encountering resistance at around $0.535, XRP has struggled to sustain upward momentum. While there were modest gains recorded on Saturday, with XRP's price increasing by just over 2.5%, subsequent days have seen a downturn, signaling bearish sentiment prevailing on the market.

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Looking forward, the future trajectory of XRP remains uncertain. However, prevailing market trends suggest a continuation of bearish sentiment. Recent price action underscores this outlook, indicating a market heading south.

In summary, while the spike in trading volume may initially appear promising for XRP, the concurrent bearish price movement presents a nuanced perspective.