• XRP trading volume skyrocketed by 130%, hitting $2.5 billion, as bulls and bears clash over key price levels
• The surge in trading activity comes as the price of XRP faces a crucial test amid a pullback in the broader cryptocurrency market
• XRP is stuck in a very tight range between $0.54 and $0.56 where both bulls and bears refuse to lose
XRP trading volume skyrocketed by 130% hitting $2.5 billion as bulls and bears clash over key price levels. Let’s take a look at the latest price action and market developments for XRP.
XRP Volume Surges to $2.5 Billion
According to data from CoinGlass, the volume of derivatives on XRP soared by over 130% today. Trading activity in mostly perpetual futures on the seventh largest cryptocurrency jumped as high as $1.9 billion, more than double the amount traded the day before.
At the same time, the cryptocurrency’s turnover on the spot market also soared, reaching $1.3 billion, up 10,804% from Sunday, according to CoinMarketCap. To assess whether this is really a big increase in trading activity, let’s look at the ratio of volume to market cap.
With a combined volume of $2.5 billion on both futures and spot markets, and a market cap of around $30.94 billion, the ratio is 8%, which is quite high but not an extraordinary level of trader engagement.
XRP Price Faces Crucial Test
The surge in trading activity comes as the price of XRP faces a crucial test amid a pullback in the broader cryptocurrency market.
In the last hour, the price of XRP has reached a key support level represented by the 200-day MA, which currently stands at $0.54. The cryptocurrency has managed to touch the band on all major time frames from one hour to one day.
This is important as the price has managed to hold above it, which means that buyers are here and they have the power and the will to buy XRP.
On the other hand, the bears also showed their hands as the price of XRP was rejected on the daily time frame right at $0.56, where the 50-day MA is currently stretched.
As it stands, XRP is stuck in a very tight range between $0.54 and $0.56, where both bulls and bears refuse to lose.
Conclusion
The recent spike in XRP trading volume shows increased engagement from both bulls and bears. As the price oscillates between key support and resistance levels, the coming days will likely determine which side has the upper hand. The outcome of this crucial battle will set the tone for the next major price move.
