Despite a 9% rise in the past week, Ripple XRP has conversely suffered in trading volume, with its TV declining by over $900 Million in 10 days. The cryptocurrency is up over $0.50, but investors still appear concerned about the asset’s future, refusing to process any transactions.
The global crypto market crash on April 11 sent XRP prices spiraling to an 11-month low of $0.42. However, the coin has since seen a remarkable rebound. The recent surge follows the Bitcoin halving event, which raised speculation that XRP and other assets would rise tenfold. While this surge hasn’t happened yet, XRP is still performing relatively well.
However, market data suggests the upward trend has not been accompanied by a commensurate increase in market liquidity, allaying fears of an imminent bearish reversal.
Data from Santiment suggests XRP investors haven’t been as active in the past 10 days. Thus, trading volume has been in decline, with just $550 million worth of XRP traded on April 23. Despite the steady price rise, TV isn’t getting any better for the asset.
Simply put, despite Ripple XRP’s prices surging 30%, the level of trading activity remains in decline, dropping by $930 million over the past week.
Falling trading volume during a period of rising prices suggests a lack of conviction or enthusiasm among market participants. Currently, XRP traders and whales appear hesitant to commit to large-volume transactions.
Also Read: Cryptocurrency: Top 3 AI Coins to Watch For Double-Digit Gains
If the trend continues, this market signal could lead to a bearish reversal for XRP. The current bullish price action lacks sufficient momentum to break above key resistance levels. Therefore, traders need to get a move on before their XRP stumbles to lows that will be difficult to rebound from, even post-halving.
Credit: Source link
