Following a surge to $0.93 a week ago, XRP’s recent rally has encountered resistance, causing market observers to question whether the upward momentum is nearing its end.
The Ripple vs. SEC case ruling generated bullish sentiments, propelling XRP to a relatively 99% rally and reaching $0.9380 on July 13. However, bears swiftly countered the rally, leading to concerns about potential exhaustion. Analyzing on-chain data can offer valuable insights into the situation.
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XRP’s objective was to solidify its position above the $1 support level, leveraging Judge Analisa Torres’s ruling. Contrary to this plan, bears pushed the asset out of the $0.9 range. On July 13, XRP closed at $0.8153.
Declining Trade Volume for XRP
After the ruling, XRP’s trade volume surged to bullish levels as investors capitalized on the prevailing optimism. On July 13, trading volume reached a 23-month high of $10.4 billion, highlighting significant demand for XRP.
Although there was a decrease from the peak reached on July 13, XRP’s volume remained relatively high in the days following the ruling. Additionally, XRP witnessed a notable surge in global trades, surpassing 4 million trades per minute at certain points.
However, the volume steadily declined over four days from the peak of $10.4 billion, settling at $2.5 billion on July 17. Despite the drop, this value still exceeded the annual average by more than double.
Recovery in Trade Volume
XRP’s trade volume experienced a slight uptick on July 18, rising by about $120 million from the previous day’s low. Although not significant in magnitude, this increase countered the expectation of continued decline due to waning interest.
Interestingly, the subsequent day saw an even more substantial surge in trade volume. On July 19, volume reached an impressive $3.9 billion. XRP capitalized on this increase in interest to reclaim the $0.80 price level, concluding the day with a 5.40% intraday gain.
The fluctuating trade volume and price of XRP should not be hastily interpreted as a sign of rally exhaustion. Rather, they reflect market uncertainty and indecision among traders. XRP currently finds itself in a critical position, with market participants eagerly observing the aftermath of the recent court ruling.
As of press time, XRP is trading at $0.7429, with about a 4% price downtrend in the last 24 hours. Despite this, XRP has still in profit based on weekly price estimation, with about a 4% uptrend, according to CoinMarketCap.
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