XRP Volume Crashes 63% Despite Price Rise, What’s Going On?

XRP’s trading volume has declined 63% in the last 24 hours to $3.23 billion, according to CoinMarketCap data.

The surprising volume drop comes as the XRP price rose nearly 5% in the last 24 hours. At press time, XRP was up 4.24% in the last 24 hours to $1.46.

The volume drop might not be concerning given a trend usually noticed on Sundays, where trading activity usually declines at the fresh start of a week as traders adjust their positions.

The XRP price trades in green on a daily basis following a sharp rebound on Friday. XRP rose about 25% to reach $1.55 on Friday after a sharp sell-off earlier that had driven its price down as low as $1.11.

According to Santiment, panic-sellers might have stopped to notice the massive activity recorded on XRP Ledger, with unique addresses suddenly skyrocketing to 78,727 in just one eight-hour candle (the highest in six months).

Obvious whale accumulation also occurred during the XRP price dip, with 1,389 separate $100,000 whale transactions, which is the highest in four months. Santiment noted both as major signals of a price reversal.

Following a week-long massive sell-off, the crypto market is showing signs of recovery, with a handful of digital assets trading in green.

What’s next for XRP?

XRP remains down 10.3% weekly, but the positive thing is that buyers aggressively bought the dip, pushing the price back into a channel pattern.

If the current rebound is sustained, XRP will target $1.71 next, where it might face a barrier. However, a successful rise might see XRP target $1.88 and $2.44 next (the daily MA 50 and 200). Support is expected in the $1 range if declines continue.

February is set to see new amendments activate on XRP Ledger. Permissioned DEX has achieved validator consensus to activate in two weeks. The current countdown is about nine days, according to XRPScan data. Token escrow is also in a two-week activation period, with the current countdown being four days.