XRP Trading Volume Skyrockets by 240% in 24 Hours as Key Support Levels Await
In an astonishing turn of events, the trading volume of XRP has surged by a remarkable 240.21% in a span of just 24 hours, reaching an impressive $1.84 billion. This surge in trading activity comes amidst a backdrop of increased market volatility, with XRP’s price experiencing minor fluctuations and gaining 0.87% during the same period.
A contributing factor to this turbulence is the ongoing legal battle between Ripple, the entity behind XRP, and the U.S. Securities and Exchange Commission (SEC). Today marks a crucial deadline for the SEC to respond to Ripple’s proposed solutions in their legal dispute.
As the market absorbs these developments, the price of XRP stands at $0.5383 at the time of this report. Despite the price fluctuations, XRP’s market capitalization remains strong, rising 0.78% intraday to settle at $29.7 billion.
This translates to a trading volume-to-market capitalization ratio of 6.19%, indicating robust trading activity relative to the size of XRP’s market cap. This ratio serves as a significant indicator of market sentiment, suggesting that while the trading activity is significant, it aligns with patterns observed during periods of market uncertainty in the past.
XRP now faces critical technical challenges in its path. The token has exhibited bullish momentum since the beginning of the month, with a 19.12% rise as depicted on the 4-hour chart. However, after encountering resistance near the $0.57 region, a price correction ensued, aiming to establish support by retesting the 50% Fibonacci level.
If this level holds strong, XRP may embark on another bullish rally, potentially surpassing the $0.57 resistance area and targeting the $0.60 level. On the other hand, breaching the 50% Fibonacci level could lead to further downward movement, seeking support at the 38.2% Fibonacci level as a safety net. A breach at this point may result in XRP prices dropping to the March low, signifying a significant pullback.
From a technical standpoint, the MACD indicator indicates a weakening bullish momentum, trending downward at 0.0054. This suggests a potential shift in market dynamics, with bears potentially gaining control in the short term.
Furthermore, the MACD line has subtly dipped below the signal line, indicating a possible downturn. The diminishing MACD histogram bars, reflecting prevailing market sentiment, inch closer to the zero thresholds, hinting at diminishing purchasing momentum and an impending shift towards selling pressure.
Aligned with these observations, the Relative Strength Index (RSI) has departed from the overbought zone, descending in a corrective manner and signaling a potential phase of price correction. With the RSI currently positioned at 53.32 and below the signal line, it implies a potential bearish trend as it approaches the neutral zone and continues its decline.
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